cancel
Showing results for 
Search instead for 
Did you mean: 

Mortgage payment plans...2 times a month

tag
demi
Established Contributor

Mortgage payment plans...2 times a month

I know the idea of paying a mortgage, say every two weeks has been discussed before, and there seems to be a general reluctence on the part of lenders to do it.  I was just checking out the daily interest rates on the Wells Fargo site, and found a link to different payment plans.  I sounds like you just sign up for it.  So....if anyone who has a Wells mortgage is interested, its there.

Starting Score: EQ 679, TU 697
Current Score: EQ 680, TU 672
Goal Score: EQ 720, TU 720


Take the FICO Fitness Challenge

Message 1 of 4
3 REPLIES 3
DallasLoanGuy
Super Contributor

Re: Mortgage payment plans...2 times a month

make one extra pmt per yr with your tax return or Christmas bonus and achieve the same thing. knock off 7yrs from your mortgage
 
Retired Lender
Message 2 of 4
demi
Established Contributor

Re: Mortgage payment plans...2 times a month

I was originally going to go with the idea of an extra payment once a year, end of June I get all my management leave paid out that I haven't used. But, the idea of being able to break my mortgage payments up into my pay schedule would make it a lot easier. Get paid every other Friday, so it would be 1 month extra payment a year. Then, unused management pay can go to home improvement !

Starting Score: EQ 679, TU 697
Current Score: EQ 680, TU 672
Goal Score: EQ 720, TU 720


Take the FICO Fitness Challenge

Message 3 of 4
MattH
Senior Contributor

Re: Mortgage payment plans...2 times a month



@demi wrote:
I was originally going to go with the idea of an extra payment once a year, end of June I get all my management leave paid out that I haven't used. But, the idea of being able to break my mortgage payments up into my pay schedule would make it a lot easier. Get paid every other Friday, so it would be 1 month extra payment a year. Then, unused management pay can go to home improvement !




Just open a savings account, and every paycheck deposit half the monthly mortgage. Transfer the exact amount of each payment to checking just before making each payment, and at the end of the year you'll have enough in that account to make an extra principal payment. If and when you have a little extra cash, put that into this account as well so you can make a bigger principal payment at the end of the year.

Here is what the Mortgage Professor (whose entire web site is an excellent resource, by the way) says about extra principal payments as an investment:

http://mtgprofessor.com/A%20-%20Amortization/is_unused_home_equity_a_missed_fortune.htm
TU 791 02/11/2013, EQ 800 1/29/2011 , EX Plus FAKO 812, EX Vantage Score 955 3/19/2010 wife's EQ 9/23/2009 803
EX always was my highest when we could pull all three
Always remember: big print giveth, small print taketh away
If you dunno what tanstaafl means you must Google it
Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.