Thinking about switching my mortgage payment to biweekly. Anyone here do this? I like the idea of paying the mortgage off early. Plus, more payment goes to principal, in 10 years with biweekly I would have an extra almost $30k towards principal than with a single monthly payment. Might even help FICO if it shows a greater amount of principal paid off----> less debt. Don't really know. Seems like a good idea????
Is this one of those "plans" where you pay some outfit to set it up? You can always just add extra principal to any monthly payment, and you can choose which months you do it and how much you add. First pay off other debt, which typically has a higher interest rate after taxes than mortgages.
You ALWAYS pay $50-$100 (or more) EXTRA every month and "IF" things get TIGHT...stop it at any time!!!
I called the "servicer" of my loan and they said NO. They don't do biweekly payments. But the original lender said I was able to do biweekly payments, I recieved some kind of a letter from them about this in the first few months. Should of switched to biweekly before the "new" guys, I guess???
Re: Re: Biweekly Mortgage Payments You CAN ALWAYS pay $50-$100 (or more) EXTRA every month and "IF" things get TIGHT...stop it at any time!!!
I thought my lender offered this with some kind of a "fee" for initial set-up. The rate on my home is the largest rate for all my debts....car----2.99 CC----->4% for life. Maybe I'll just pay off some towards principal, like George said. With biweekly, you do a total of 13 full payments (26 a year) instead of 12 with a single pay.
I wouldn't pay someone you can do for free. I pay extra on my mortgage each month (1/12th of my payment each month) that totals an extra payment per year. I just notate to apply the extra to the principal. I'm sure whoever you got that info from is going to charge you to do that and don't pay for it. You should be able to do it yourself without a fee.
Another thing you can do is pay the regular payment every 4 weeks instead each month.This makes an extra month in the year.I do my whole anual budget based on a 13 month year instead of a 12 month calendar year.
