Video Transcript: Automatic Payments every 2 weeks
Note:
Light, breezy music plays.
This video uses text, drawings, and infographics to illustrate spoken content.
On screen:
Chase and Chase logo.
A large house appears, along with the text: FlexPay Option 3: Every 2 Weeks Automatic Payment.
A drop-down menu appears. It is labeled "Frequency." The menu offers three options:
Monthly
Twice a month
Every 2 weeks
The "Every 2 weeks" option is highlighted.
Narrator:
The third option, for mortgage customers, if you still want to spread out your payments but want to pay down your loan a little faster, is every two weeks.
On screen:
A blue button marked "monthly mortgage payment" splits into two smaller buttons labeled "1/2."
Narrator:
It allows you to pay half of your total monthly payment every 14 days, choosing the day of the week that works best for you.
On screen:
A calendar appears, showing two payment dates, marked "1/2," placed two weeks apart.
Narrator:
There are usually two months per year, depending on how the calendar dates fall, when you will make a payment three times during a given month. Make sure you are prepared for these months when a third payment would be made.
On screen:
Two calendars appear, for March and August—both showing three payment dates, falling two weeks apart along.
Text appears: Make sure you are prepared for these months when a 3rd payment would be made.
Narrator:
These extra half payments are applied to the principle amount of your loan in that month. Meaning, you end up paying one full extra payment per year.
On screen:
March mortgage payment; August mortgage payment; and Yearly Extra mortgage payment. This helps you pay your loan down quicker and pay less interest.
Narrator:
This helps you pay your loan down quicker and pay less interest. For example, on a 30-year home loan, for $250,000 at 4 1/2% interest.
On screen:
A chart labeled "30 Year Loan" "Monthly" shows interest at 206,016 dollars.
Small print text: Assume a 4.5% interest rate and 475 dollars per month in taxes and insurance.
Narrator:
By choosing the 'every two weeks' payment plan, you would pay off the loan 5 1/2 years sooner and pay approximately $43,000 less in interest over the life of the loan.
On screen:
The chart is marked "Every Two Weeks" It shows the loan paid off in 24.5 years with interest at 162,094 dollars. A green button appears, labeled "$43,000 less interest!"
Narrator:
As with the twice a month option, your half payments will remain in an unapplied bucket until you've satisfied your total monthly payment amount.
On screen:
Two cylinders appear. One is labeled "Monthly Payment unapplied bucket." A smaller one is labeled "Extra Payment." Both are marked with dollar signs. A calendar shows three payment dates, occurring at two week intervals. The "Monthly Payment unapplied bucket" cylinder fills up, as the calendar displays a count-down to the second payment date. The "Extra Payment" cylinder fills, as the calendar displays a count-down to the third payment date.
Narrator:
You may notice this online or on your statement. Learn more today at chase.com/FlexPay.
On screen:
Chase and Chase logo. chase.com/FlexPay. Equal Housing Lender.
Narrator:
Savings are approximate and will change based on different loan terms. ARM (adjustable rate mortgages) loans can behave differently due to periodic rate changes and reamortization. Your balance and future payments may be reduced but the term may not. For more information please contact us.