Bi-weekly Mortgage Payments?

[JasonK94Z]

I have a mortgage with MrCooper. Im about to name my full mortgage payment this coming Friday. I'm curious now about paying bi-weekly and wondering how to start.  Is it worth doing?  I get paid every two weeks. 

[ShanetheMortgageMan]

Ask if they have a bi-weekly payment program, not all lenders accept them.  If you don't make your payment in full then some lenders will hold your funds in an account until the remainder of the full payment is made, then will finally apply it to the mortgage.  

Most bi-weekly payment programs have a cost, either an initial fee or an additional fee each bi-weekly payment, and sometimes both, so get any details on those fees before deciding.

A similar way to reduce your interest is just to make additional principal payments each month, this doesn't come with any fees or additional costs, just add 1/12th of your mortgage payment as an extra principal payment.

[JasonK94Z]

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@ShanetheMortgageMan wrote:

Ask if they have a bi-weekly payment program, not all lenders accept them.  If you don't make your payment in full then some lenders will hold your funds in an account until the remainder of the full payment is made, then will finally apply it to the mortgage.  

Most bi-weekly payment programs have a cost, either an initial fee or an additional fee each bi-weekly payment, and sometimes both, so get any details on those fees before deciding.

A similar way to reduce your interest is just to make additional principal payments each month, this doesn't come with any fees or additional costs, just add 1/12th of your mortgage payment as an extra principal payment.

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Thank you so much for the reply. I'm glad I asked before embarking on this. The 1/12th principle idea is great! 

[JoeRockhead]

Making bi-weekly mortgage payments is the same as making 13 full payments a year. On a 30 year mortgage you can end up paying it off around 6 years early. A 15 year mortgage around 2 years early. 

[Shooting-For-800]

It all depends on interest rate.

if you are at 2-4%, I would just save the money for an emergency.  
That is cheap money.
Maybe pay an extra $100 or $200 or 10% more but nothing radical.

JMO.

[taggl00]

I'd only do this if every other debt you have is paid off....you'd be in baby steps 4,5 and 6 at that point....max out retirement, kids college, and payoff house

[BungalowMo]

I have Mr. Cooper also.  What I have always done, when I could afford it, was to add extra principal to my monthly payment.  Several years ago when I was making really good $$, every month I would add between 100 & 250 on the principal.  I'm glad I did that when I could, since I plan to sell & move in late Summer/early Fall.  I wish I could take that 4% rate with me!

**Question for OP.  Did you really mean bi-weekly payments, or did you mean bi-monthly?  Just curious.

[Shooting-For-800]

FTR - Bi-weekly actually can mean either twice a week or every two weeks.  Generally it means every two weeks.  ie - I get paid bi-weekly.