topic Re: Payment twice a month? in Mortgage Loans

Payment twice a month?

deg757 — Mon, 12 Nov 2012 22:33:04 GMT

Is the program to pay half your payment every two weeks a good idea? Has anyone done this? I just got a letter in the mail asking me if I want to sign up. I guess it means you make 13 payments per year instead of 12. Also, my first payment is due December 1. If I sign up for this program, will I pay a full payment or half?

Re: Payment twice a month?

tooleman694 — Mon, 12 Nov 2012 22:47:51 GMT

Anything to speed up the mortgage process the better.

This probably works better for people that are paid on the 1st and 15th vs by weekly.

Re: Payment twice a month?

beb86 — Tue, 13 Nov 2012 00:05:27 GMT

It will save you good money in interest but keep in mind you will make an extra full payment a year. When you pay monthly you pay 12 full = 24 half payments, and with this program you pay 26 half payments = 13 full payments. But you are required to make a payment ever 2 weeks, I make and extra "to principle" payment each month that can save me just as much in interest without the restraints of having to pay every two weeks.

Re: Payment twice a month?

IOBA — Tue, 13 Nov 2012 01:22:03 GMT

Ask the bank if there is a fee to set up bi-weekly payments. (Mine charged, but allows me to make as many payments as I want, no charge. So on one payday, I do a principle ONLY payment. The next payday, I do my regular payment plus an additional payment principle only. On the rare occassions when I have three paychecks in a month <happens twice a year>, I make an extra principle payment.)

Ask the bank how they will apply the payments. (Mine allows me to decide when I make the payment. I choose principle only, but I do have the choice of paying ahead to the next month.)

Re: Payment twice a month?

beb86 — Tue, 13 Nov 2012 03:55:07 GMT

IOBA wrote:
Ask the bank if there is a fee to set up bi-weekly payments. (Mine charged, but allows me to make as many payments as I want, no charge. So on one payday, I do a principle ONLY payment. The next payday, I do my regular payment plus an additional payment principle only. On the rare occassions when I have three paychecks in a month <happens twice a year>, I make an extra principle payment.)

Ask the bank how they will apply the payments. (Mine allows me to decide when I make the payment. I choose principle only, but I do have the choice of paying ahead to the next month.)

+1 on this advice