There are many ways to prepay a mortgage. Making bi-weekly payments or a fixed extra amount is most common. Altgage PrePay is a new way to prepay that is smarter, faster, and cheaper. It also challenges the 100yr status quo of asymmetric amortizing mortgages by building equity fairly. The example below is for a $500K loan 30-yr fixed-rate loan of 6%.

1. Bi-weekly payments - divide a monthly payment into two equal parts and create a 13th payment each year. That's because there are 26 x 2-week periods in a year, but only 12 months. It's a little calendar trickery that aligns with many bi-weekly paychecks.

2. A fixed extra amount - is another common approach to partial prepayment. $100 or $200 per month is typical. Contributions remain fixed, and the loan usually ends a little later and has lower savings compared to a bi-weekly payment schedule. Precise savings depend on the loan size and interest rate.

3. Altgage PrePay - is a fundamentally new approach to partial prepayment. Total contributions are lower, and savings are typically higher vs. bi-weekly payments. How's that possible? It's just mortgage math. Earlier prepayments are worth more, so Altgage PrePay makes the bulk of contributions in the first ~10 years and then stops. Equity is built linearly, while prepayments decrease over time.