Do you use autopay or mail a check?

[Anonymous]

I've read some horror stories so I've always mailed a check for my mortgage payment and kept records of that.  However, enrolling in automatic payments so that the money comes directly from my bank account would be much more convenient.

Also, when I mail a check, they don't even process it as a check, but rather use the account information on the check to make an ACH withdrawal.

So, is there really any difference?  It seems I should just enroll in autopay for the convenience.

I'm curious which method you all use as well.

Thanks!

[FrugalRican]

I'd autopay if it meant a reduction in the APR. Some banks will actually do that. Every little .25% counts.

[Lel]

I enroll in autopay for any account that offers it.  This includes my mortgage, phone, mobile phone, utilities, and credit cards.  If it is an autopay service that is provided by the creditor - for example, Chase CC initiates the ACH transfer, as opposed to my arranging to have the payment sent from my bank - then I think it's better.  That's because if the CC company fails to make the transfer, then I can blame them for the problem.  Chase has had some problems with this in the past for me, and they've always removed any late payment fees.  This is just my opinion, though.

I've had many checks get delayed or completely lost in the mail, so I try to avoid it as much as possible.

[Watchmann]

Unless you have a completely clueless service provider the easiest way to do it is autopay.  You don't have to worry about remembering to send a check or the date.  I try to autopay everything and have never had a problem.  My home loan started with ABN Amro which sold the business to Citimortgage and the transfer of account from one to the other went as smooth as silk, no problems.  And last year I changed bank accounts and I just went online and changed from one bank to the other......no problem there either.  I'm almost 8 years into the loan and have never had a problem.  I'd hate to go back to paper checks.......that's like going back to the 1970's.  No thanks.

[MarineVietVet]

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@Lel wrote:

I enroll in autopay for any account that offers it.  This includes my mortgage, phone, mobile phone, utilities, and credit cards.  If it is an autopay service that is provided by the creditor - for example, Chase CC initiates the ACH transfer, as opposed to my arranging to have the payment sent from my bank - then I think it's better.  That's because if the CC company fails to make the transfer, then I can blame them for the problem.  Chase has had some problems with this in the past for me, and they've always removed any late payment fees.  This is just my opinion, though.

I've had many checks get delayed or completely lost in the mail, so I try to avoid it as much as possible.

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Ditto to everything Lel said. Plus I check every account early and often to make sure each payment is made on time as scheduled. I've never had any problems with autopay.

[rena347]

Actually, I use a third option. I pay at the lender's website each month. The payment posts the same day if I pay before 5 pm and I control when the money comes out of my checking account. I have an $1100 mortgage payment and I don't always have that much of a balance in my checking account. I autopay smaller payments but I just don't want to take the chance on my mortgage payment being short of funds. In five years, I have never had any issue with the payment posting correctly.

[Anonymous]

I use online banking but I initiate all payments per payment. It seems most banks sit on your funds until the last minute in order to draw interest on your money. I prefer to make my payments the instant they are reported/first day. I've done this from the onset of online banking and have never had a problem.

[webhopper]

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@rena347 wrote:

Actually, I use a third option. I pay at the lender's website each month. The payment posts the same day if I pay before 5 pm and I control when the money comes out of my checking account. I have an $1100 mortgage payment and I don't always have that much of a balance in my checking account. I autopay smaller payments but I just don't want to take the chance on my mortgage payment being short of funds. In five years, I have never had any issue with the payment posting correctly.

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I use this method as well with both my mortgages...    For the same reason as the above poster... my cash flow is crazy from the 1st to the 15th, and I don't always know how the weekends will fall, or when I will get to the bank to deposit the checks from my renters, or how the mail will run with the child support I receive.   So ya, I wait til the money i there, then I go to the mortgage company's website, and initiate a payment from the lenders website....    If for some reason I don't have the cash to completely pay until the 15th, I actually go the bank to make the payment and it always posts on time with no issue.   One mortgage is with a local Oklahoma bank  Bank of Oklahoma...  The other is with Wells Fargo.   Bank of Oklahoma has branches inside of the Food Pyramid that stay open until 9 PM.... so there is no way for me to actually be late unless I'm just being too lazy to go to the Food Pyramid...  I've had the BOK Mortgage for 6 yrs, and its never been late...  The Wells Fargo is new, but I've made two payments so far, and the payments posted with no issues.