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Bi-Weekly Mortgage
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Did You Know?
Making one extra mortgage payment a year will knock
years off your mortgage and save you thousands of
dollars.
Click here
to learn more.
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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 happen.
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".
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