topic Re: Bi-weekly payments for mortgage and auto loan in General Credit Topics

Bi-weekly payments for mortgage and auto loan

Anonymous — Thu, 03 Jun 2010 03:07:21 GMT

Greetings everyone. I am new to these forums.

I am in the midst of purchasing a home then shortly thereafter an auto.

Specifically, I am interested in having bi-weekly payments on both assets. Why? I like the prospects of making 26 payments a year vs. 12 monthly ones. After all it allows me to better manage my finances while concurrently it reduces the amount of interest being paid over the lifetime of the loans, especially on the mortgage. It seems like all benefits and no drawbacks but I want to make sure I am not overlooking any aspects.

Does anyone in these forums have any current or recent historical experience with making bi-weekly mortgage and auto loan payments? If so, would you please share your experiences, whether they were pro or con.

Thank U.

Re: Bi-weekly payments for mortgage and auto loan

Anonymous — Thu, 03 Jun 2010 12:46:50 GMT

I think these banks will charge you a fee for structuring your payments this way. You could obviously do the same by making an extra payment without the fees.

Re: Bi-weekly payments for mortgage and auto loan

Anonymous — Thu, 03 Jun 2010 17:04:16 GMT

As long as the entire amount is paid by the due date I see no issue with it.

I have paid both my rent and auto loan this way for a long time. I am never late and there is no fee charged.

Re: Bi-weekly payments for mortgage and auto loan

Anonymous — Thu, 03 Jun 2010 17:29:23 GMT

Nope. No surcharges or fees for bi-weekly payments. I have already bridged that topic with my preferred lender.

Re: Bi-weekly payments for mortgage and auto loan

JoeBJay20 — Thu, 03 Jun 2010 17:42:30 GMT

If there are no fees, then there is no downside. You'd have a system that works better for you and allow you to pay less interest over the life of the loan.

Re: Bi-weekly payments for mortgage and auto loan

Anonymous — Fri, 04 Jun 2010 05:21:16 GMT

I have plenty of time before closing on the mortgage and I will do the necessary diligence on this topic before making a definite choice. If others have valuable insight, I trust that you will offer it up.

Thank U.

Re: Bi-weekly payments for mortgage and auto loan

MidnightVoice — Fri, 04 Jun 2010 13:09:17 GMT

It has been a long time, but.....

I used to get paid bi-weekly, and there were specific bi-weekly mortgages available for people that wanted them - bi-weekly or weekly paid people.

Re: Bi-weekly payments for mortgage and auto loan

Anonymous — Fri, 04 Jun 2010 17:03:50 GMT

We get paid bi-weekly as well. We've kept our payments on the monthly plan for both our mortgage and car loan.

But in our budget, we have scheduled 13 payments a year for both of them. I like the flexibility - if there's a family emergency, I can still pay the 12 payments and be on time. In the meantime, my payments get in plenty ahead of the due date, so that keeps the stress level down.

Congrats on your new home-to-be!