Ask and you shall receive. I sent an email to my mortgage company asking if they have any programs allowing me to pay my monthly mortgage payment bi-weekly.
They said yes, and sent me a form to fill out.
I don’t know why they just didnt offer this plan when I closed on our house. Probably because they will lose a lot of interest and wanted to keep it a secret.
What can bi-weekly payments do for you?
Rather than making one mortgage payment each month you pay one half of your mortgage payment bi-weekly.
With this plan you will have made the equivelant of 13 monthly mortgage payments instead of 12 at the end of the year.
The 13th goes directly to principal, dramatically reducing the overall interest you pay on the loan and reducing the overall time period you pay on the loan.
Example of our savings:
Total interest with regular payments: $177,107.49
Total interest with bi-weekly payments: $138,813.62
Projected interest savings benefit: $38,293.87
Ok, that is significant.
This is not a refinance, so there is not much to it.
If you are not on this plan, go now and inquire with your mortgage company if they offer it.
It is a huge deal.
The Debt Whisperer