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Replies (9)
- Clay Branch, "Georgia Loans"
- Contributions:7355
There is probably a fee to set it up so you can avoid that and do it yourself. The BiWeekly plan pays 13 payments per year so you can take your payment,divide by 12, and add that to your payments as additional principal ( send a seperate check ).
- Dave Skow, "daveskow"
- Contributions:1049
you can essentially accomplish the same result by paying a bit extra every month or adding an extra payment ( or more ) into the mix every calender yr
if you notice on those solicitatiosn you mention , these always seems to be a fee ( which is pretty high in my opinion) associated with this " service " ... thus I am of the opinion this is a " scam "
if you notice on those solicitatiosn you mention , these always seems to be a fee ( which is pretty high in my opinion) associated with this " service " ... thus I am of the opinion this is a " scam "
- Jacob Varghese, "subjacob"
- Contributions:75
If you plan to live in the house only for a couple of years, it would not make much sense. Anyway extra payments would increase your equity in the house. Keep track of the extra payments and see if it reflected in your statements. Do it yourself and avoid the service fee!! This is not rocket science.
- SoCal_Engr
- Contributions:5371
The main reason I don't use the bi-weekly approach is that it locks you into the payments. If you have the discipline to make extra principal payments, you can achieve the same results on your own with the added flexibility of making "only the normal payment" when needed.
Since you say you "will only be in the house for a few more years", it might be a better idea to set up a separate savings account and make the "extra payment" into that. Given your short horizon and the current market, it would be better to have that extra money more easily accessible.
The real "win" in making the extra payments is for those who plan to stay in the house for an extended period of time. By paying down the principal, you save on interest over the life of the loan and can shorten the payoff period. Since your planning on selling/moving in the next few years, your plans don't align with the idea of putting the money against the loan - I'd put it aside in a more accessible vehicle.
Since you say you "will only be in the house for a few more years", it might be a better idea to set up a separate savings account and make the "extra payment" into that. Given your short horizon and the current market, it would be better to have that extra money more easily accessible.
The real "win" in making the extra payments is for those who plan to stay in the house for an extended period of time. By paying down the principal, you save on interest over the life of the loan and can shorten the payoff period. Since your planning on selling/moving in the next few years, your plans don't align with the idea of putting the money against the loan - I'd put it aside in a more accessible vehicle.
- Alison Paoli, "AlisonPaoli"
- Contributions:23
Thanks everyone for your replies. I kicked myself for not asking questions before I got my original mortgage and therefore got into a bad deal. Thank goodness I was able to refi recently but now I ask questions before making any move....
Thanks again!
Thanks again!
- Chip Streater, "TarheelChip"
- Contributions:4592
BWMA
Check these guys out. I spoke with the owner 3 weeks ago. Super nice guy that helped invent the bimonthly/biweekly program. I have a couple refinancing that swear by the program. This site even has a calculator to figure out how much you will save. No enrollment fee. $1.70 per transaction. They tried to give me a referral fee, but I refused. Its a $50 gift certificate to a chain restaurant. Tell them I referred you and they'll send the gift certificate to you.
Check these guys out. I spoke with the owner 3 weeks ago. Super nice guy that helped invent the bimonthly/biweekly program. I have a couple refinancing that swear by the program. This site even has a calculator to figure out how much you will save. No enrollment fee. $1.70 per transaction. They tried to give me a referral fee, but I refused. Its a $50 gift certificate to a chain restaurant. Tell them I referred you and they'll send the gift certificate to you.
- Clay Branch, "Georgia Loans"
- Contributions:7355
Chip, if there is no fee, how do they pay commisions? See Consultant page. A Bi Monthly program would only save 1 payment out of 360 payments so no one needs that pgm :)
http://www.bwma.com/consultant/index.php
http://www.bwma.com/consultant/index.php
- Chip Streater, "TarheelChip"
- Contributions:4592
Clay--
It says "upfront commisions" on the link. I think thats if you deal with an agent in the field. I'm speaking of calling direct. If you play with the calculators its more than 1 payment thats saved. When I ran the calculator on a 15 year, ~3 years was trimmed off.
Alison can call and find out for herself. They are located in Seattle. Maybe she can stop by on her way home from Zillow World Headquarters.
It says "upfront commisions" on the link. I think thats if you deal with an agent in the field. I'm speaking of calling direct. If you play with the calculators its more than 1 payment thats saved. When I ran the calculator on a 15 year, ~3 years was trimmed off.
Alison can call and find out for herself. They are located in Seattle. Maybe she can stop by on her way home from Zillow World Headquarters.
- Clay Branch, "Georgia Loans"
- Contributions:7355
Yes, I am referring to a bi-monthly plan, stated above, only saving 1 month payment in 30 yrs, not bi-weekly.
Paying a mortgage on a weekly/bi-weekly basis versus monthly
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