Did You Know?
extra mortgage payment a year will knock years off your mortgage and
save you thousands of dollars.
Click here to learn more.
If you search for "bi-weekly mortgage" with an Internet search engine, you will
be overwhelmed by the number of companies offering "Bi-weekly Mortgage
Reduction Services" or "Bi-weekly Savings Programs." Beware, you are
entering dangerous waters.
Beware of Bi-Weekly Mortgage Reduction Services and Savings Programs
These "Reduction Services" and "Savings Programs" are charging you fees to "make a bi-weekly
mortgage payment" for you. The enticement is that they will save you an
impressive amount of money on your mortgage and reduce the number of years
you pay on your mortgage.
The enticement is that they will make bi-weekly mortgage payments for you.
The real story is that they are not actually making bi-weekly payments on your mortgage.
They are making bi-weekly deductions from your bank account.
These funds are placed into an account from which your monthly mortgage
payment is made (which only takes 24 deductions - but during the course of a
year 26 deductions will be made from your account). With the extra 2
deductions, the "Service" makes an additional mortgage payment. In other
words, rather than making 12 mortgage payments, 13 payments are made.
The enticement is that they are providing a special service to you that would either not be possible for you
to get on your own or that you won't have the time or discipline to make it
The real story is that you can
easily make an additional mortgage payment each year. An easy way to do this
is to have your mortgage payment automatically deducted from your account
each month with an additional 1/12 payment to be applied to the principal
amount. At the end of 12 months, you will have made an additional payment.
And you won't have to pay any fees to a "Service".