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dcl08
<3
Member since 4/07 3915 total posts
Name:
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bi weekly mortgage.....
does anyone do this? is it better than a normal 30 yr mortgage?
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Posted 7/1/10 10:09 PM  |
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Prudential Douglas Elliman Real Estate
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KarenG2003
My BIG man and my little man!
Member since 4/08 1684 total posts
Name:
Karen
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Re: bi weekly mortgage.....
We are considering this for our new home. It's supposed to take about 6 years off the mortgage, so that's a plus!
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| Posted 7/1/10 10:22 PM |
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ChrisDee
My Girls
Member since 11/06 9543 total posts
Name:
Christine
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Re: bi weekly mortgage.....
I believe you save money in interest this way.
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| Posted 7/1/10 10:23 PM |
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Mrs213
????????
Member since 2/09 18986 total posts
Name:
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Re: bi weekly mortgage.....
I wonder why my lender didn't give us that option
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| Posted 7/1/10 10:25 PM |
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Nik211
my little monkey<3
Member since 5/08 3303 total posts
Name:
Nik
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Re: bi weekly mortgage.....
we do this...it saves $
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| Posted 7/2/10 11:16 AM |
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w8andsee
LIF Adult
Member since 10/09 1193 total posts
Name:
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Re: bi weekly mortgage.....
Posted by staceyums81
I wonder why my lender didn't give us that option
You can probably still sign up for it even after you've closed. My bank (BOA) lets you change your payment plan, but there is a service fee associated with it. I was also told that bi-weekly is the same as making 1 extra payment per year.
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| Posted 7/2/10 11:21 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: bi weekly mortgage.....
how does this work? for example if you owe 3k a month in mortgage do you just have to pay 1,500 every two weeks? how does it save you?
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| Posted 7/2/10 11:28 AM |
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w8andsee
LIF Adult
Member since 10/09 1193 total posts
Name:
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Re: bi weekly mortgage.....
This was how it was explained to me (anyone correct me if I'm wrong). . .
Assume your mortgage is 3000 per month
Biweekly you pay 1500 every 2 weeks.
26 weeks x 1500 = $39,000 per year
Monthly
12 months x 3000 = $36,000 per year
So if you are paying biweekly you are really making 1 extra payment every year.
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| Posted 7/2/10 11:35 AM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: bi weekly mortgage.....
Posted by jenbill61210
how does this work? for example if you owe 3k a month in mortgage do you just have to pay 1,500 every two weeks? how does it save you?
It saves you interest, because you are reducing the principle amount by making al payment against it every two weeks instead of every four.
It works out the same to making an extra payment per year.
I divvy that extra payment by 12 and tack it on every month as principle reduction.
eta : I did not sign up for bi-weekly because the fees were too high. I've always added to my monthly payment.
Message edited 7/2/2010 11:45:50 AM.
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| Posted 7/2/10 11:44 AM |
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JDubs
different, not less
Member since 7/09 13160 total posts
Name:
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Re: bi weekly mortgage.....
gotcha, thanks!! 
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| Posted 7/2/10 11:57 AM |
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Pray4Baby2010
<3 Cutest Giants Fan
Member since 10/09 5796 total posts
Name:
MB
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Re: bi weekly mortgage.....
Posted by SusiBee
Posted by jenbill61210
how does this work? for example if you owe 3k a month in mortgage do you just have to pay 1,500 every two weeks? how does it save you?
It saves you interest, because you are reducing the principle amount by making al payment against it every two weeks instead of every four.
It works out the same to making an extra payment per year.
I divvy that extra payment by 12 and tack it on every month as principle reduction.
eta : I did not sign up for bi-weekly because the fees were too high. I've always added to my monthly payment.
this is how we do it too- they wanted to charge us an arm and a leg to change it to a biweekly (or is it bimonthly?) payment.
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| Posted 7/2/10 12:07 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: bi weekly mortgage.....
Don't ever pay a fee to switch to bi-weekly payments. You can accomplish the same thing by just sending an extra month's payment in every year. Or just add 10% more of your principal and interest portion of your monthly bill every month.
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| Posted 7/2/10 12:30 PM |
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KLSbear
LIF Adult
Member since 1/06 1908 total posts
Name:
Karen
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Re: bi weekly mortgage.....
Posted by ave1024
Don't ever pay a fee to switch to bi-weekly payments. You can accomplish the same thing by just sending an extra month's payment in every year. Or just add 10% more of your principal and interest portion of your monthly bill every month.
I refused to pay them a fee for the opportunity to pay twice a month. I add extra to each month, and I do my best to pay the entire month in full as soon as I get the bill - essentially making my entire payment 2 weeks early instead of just half. That will cut some interest too.
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| Posted 7/2/10 1:45 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: bi weekly mortgage.....
Posted by KLSbear
Posted by ave1024
Don't ever pay a fee to switch to bi-weekly payments. You can accomplish the same thing by just sending an extra month's payment in every year. Or just add 10% more of your principal and interest portion of your monthly bill every month.
I refused to pay them a fee for the opportunity to pay twice a month. I add extra to each month, and I do my best to pay the entire month in full as soon as I get the bill - essentially making my entire payment 2 weeks early instead of just half. That will cut some interest too.
ditto! you can easily pay them twice yourself or like PPs I just add additional to the prinicipal each month.
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| Posted 7/2/10 2:25 PM |
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SusiBee
. . . . .
Member since 3/09 8268 total posts
Name:
S
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Re: bi weekly mortgage.....
This is a great TOOL to help you figure out how much you can save by making extra payments.
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| Posted 7/2/10 2:29 PM |
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CAMCaps
Live Laugh Love Run
Member since 6/07 4922 total posts
Name:
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Re: bi weekly mortgage.....
Posted by ave1024
Don't ever pay a fee to switch to bi-weekly payments. You can accomplish the same thing by just sending an extra month's payment in every year. Or just add 10% more of your principal and interest portion of your monthly bill every month.
I was going to say the same thing. If they want to charge you, do not sign up for it. We just pay a little bit more towards it each month and are not charged a fee.
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| Posted 7/2/10 3:31 PM |
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MrsYank
She's here :)
Member since 4/07 3238 total posts
Name:
Mrs. Yank
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Re: bi weekly mortgage.....
We do it, and it really helps me keep on track with paying everything. We have it taken out directly on paydays.
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| Posted 7/2/10 4:00 PM |
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KimberlyScott
Graceyn=My World <3
Member since 10/08 4173 total posts
Name:
Kimberly
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Re: bi weekly mortgage.....
Posted by MrsYank
We do it, and it really helps me keep on track with paying everything. We have it taken out directly on paydays.
Us too!
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| Posted 7/2/10 4:02 PM |
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