One tactic that we highly recommend for your mortgage is making biweekly payments. That’s what we are going to discuss today, and hopefully we will provide you with some insight as to why it’s such a good idea.
As soon as you put your mortgage in place, whether it’s for a new home or a refinance, you are going to get solicitation immediately from 3rd party companies asking you to set up a bi-weekly mortgage payment program. It is a great idea to do this, but there are some things I don’t like about some of the requests out there.
If you only take one thing away from this post, it should be this: Do not pay any type of fee to set up biweekly payments. Whether it’s an up-front fee or a per-payment fee, paying $3 or $4 for each transaction is not a good deal.
If a lender contacts you and says they will collect your payment every 2 weeks and apply it towards your principle, that is a good program (as long as there are no fees involved).
Another way to accomplish this is by taking your monthly payment, dividing it by 12, and adding 1/12 of that monthly payment to each regular monthly payment, and you will substantially reduce your mortgage. You will be able to pay it off 6 years sooner by utilizing this technique.
These aren’t the only ways to achieve mortgage acceleration. If you want to know some more about how you can pay off your mortgage quicker, check out these links
If you have any other questions for us, feel free to give us a call or send us an email. We look forward to hearing from you!
