Mortgage payments

How do you make your mortgage payments? Online, direct debit, mail check?

Also, who mails in an extra payment a year or pays no weekly? Does it really take that many years off the mortgage? Has anyone done this and ate almost done and almost done?

We're closing on Tuesday and trying to get ideas before then!!!

Mortgage payments

There are calculators out there you can see how you would benefit by making extra payments to the principal.

The sooner you start paying more is the more impact if will have. If you start paying extra on month 2 of the loan, it will save you more money than if you were to pay the same amount on month 12 of the loan, due to the compounding interest. But right after closing is when you probably don't have money to start making extra payments!

We pay very aggressively towards the principal, and if we keep on the same track our 30 year mortgage should be done in 15 years.

Re: Mortgage payments

Even if we don't make extra Payments, the bi weekly should help in itself, right?

Mortgage payments

Yes and no. Some banks will charge you a fee to make bi-weekly payments. And I'm not sure if you actually sign up for bi-weekly payments if that really takes down the principal that much faster, because all they've done is divided your monthly charge by 2. They are building bi-weekly payments into the loan.

You don't have to give a separate extra payment. Just pay a little extra each month or whatever your payment frequency is. Usually the slips or online allow you to break it down - They tell you your monthly payment (10,000 as a fake number) and then they break it down so you can apply extra money. So if I write a check for 13,000, I will write 10,000 for the payment, then mark the extra 3,000 to go towards the principal (as opposed to escrow, fees, etc.)

It's better to send a little each period than to hold it all until a certain point and send in a big check. You will be charged less interest faster.

Mortgage payments

We took out our mortgage last October. As soon as we get the payment letter, we pay. Our mortgage payments are paid through january of next year. Now, we 're starting to rotate payments. The next payment we mail will be the full amount of the normal monthly payment but applied to principal. The next one would be the regular monthly payment. In the amount of time we have already paid $10k off our principal. I am determined to have this house paid for in 7-10 years. And we will do whatever it takes to do that. We have a crazy low interest rate and that helps a lot.

FTR we took a 7/1 ARM. Our interest for the first 7 years is below 2.5%. After 7 yrs yes it does vary but is capped at less than 7.5%, so for us it works. It's also what helped us set up our goals. The hope is to have the mortgage paid off before the 7 years is up. It does take discipline though. We basically make 2 mortgage payments a month.

You can find calculators to see the pros and cons of biweekly payments. I am pretty sure that our lender allows the setup of biweekly payments on their website. We mail checks. I do recall reading that biweekly payments can cut about 5 years off your mortgage with no other changes, but I could be wrong.

Message edited 6/28/2013 8:33:26 AM.

Mortgage payments

I will be paying online. Just closed last week. My lawyer explained extra payments to me and if we make an extra payment each year it will take 7 years off the mortgage. At least I think that's what he said. But that's our plan.

Mortgage payments

I have a question--can you pay your mortgage via credit card? we don't do that now with our coop, but it would be awesome to get the points...

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I do automatic pay, so Chase takes it out of my account on the 15th.

If I want to make an extra payment, I send a check into them.

Re: Mortgage payments

Re: Mortgage payments

Mortgage payments

DH pays it online so it goes through on the 15th of the month.

Mortgage payments

We have auto deduct through our bank.

Mortgage payments

I pay it online the day before it's due and I just round it up and put that amt. towards principal only. The key is to make any extra payments towards principal this way you build up equity in your home faster.

Re: Mortgage payments

I pay it monthly online through the banking website.

Also, DH and I will be making 1 extra payment a year when he gets his bonus. When you make an extra payment just make sure it goes towards the principle. Otherwise you'll be paying off interest which doesn't help anything.

Re: Mortgage payments

We pay biweekly. It automatically gives you an extra payment a year. 26 half-payments = 13 full payments. The extra payment is automatically applied to principal.

In addition, we round up the amount that we pay biweekly and that amount is applied to the principal as well. We have a 30 year mortgage. At the rate we're going it will be paid off in 16.

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Mortgage payments

I pay online. Making more frequent payments or adding extra toward principle will help you pay off your mortgage faster.

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I have it set to automatically come out of checking on the 15th.

Our mortgage company has changed like 3x, and I hate this one the most (Green Tree).

DH pays our mortgage/taxes, and since he's self-employed, doesn't always have the money on the 1st.

By setting up the automatic withdraw, this is the only way our bank would not charge us late fees.

In the past, I paid online and the other two companies gave us to the 15th before charging late fees.

I would like to get to the point where we are paying a little more towards the principle, but we're not there yet.

(We could, but choose to pay off other things instead, like savings and my student loan).

Re: Mortgage payments

I pay online or at the teller if I happen to go to the bank.
I round up the payment amount and apply the extra to principle. Coincidentally adds up to one month's payment so I am making rhe equivalent of 13 payments per year. You chip away at the principle faster if you pay a little every month vs. making one lump sum once a year. Makes a difference in the interest calculation. I don't remember how much ttime and money I save doing this.
The mortgage calculator on Bankrate.com is a really good one.

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I walk into the bank on the 15th and pay in person.

As far as making extra payments, we make two extra payments to principal per year.

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Re: Mortgage payments

If you take your monthly payment (P&I) and divide by 12, you take that number and add it to your monthly payment.

ie mortgage is $2000/12=$167

If you add that number to your mortgage payment - you pay an extra month.

If you divide your entire bill (including taxes and insurance) by 12, you pay even that much more to the principal.


I round up to the nearest thousand. It's just easier that way from me mentally. I have my bank send my mortgage company a check.

Re: Mortgage payments

So if I wanted to make an additional payment a year (on top of bi weekly payments) I would just divide my mortgage payment (Principal and interest amount only, no taxes) and divide by 12 and add that to each payment? If my principal and interest is $2,000 a month, add $166 to my bi weekly payments and that will also add an extra payment, ontop of the additional bi weekly payment, for a total of 2 extra payments a year, right?

Re: Mortgage payments

Re: Mortgage payments