CrzyC1414779017 Posted November 10 Report Share Posted November 10 So my first payment is coming due on 12/1 and I have received a letter in the mail telling me that I have the option to split the payment into a bi-weekley bill instead on once a month. The letter also states that by doing this I could save $$$ in interest charges and shorten the length of loan. Is there any truth to this or is it just a scheme?Thanks. Quote Link to comment Share on other sites More sharing options...
Guest Mattivi Posted November 10 Report Share Posted November 10 its true you end up making an extra payment or two every year so that cuts down on interest and the amount of time you pay on the loan. Quote Link to comment Share on other sites More sharing options...
Guest Electric Eel Posted November 10 Report Share Posted November 10 Yeah my bank does that too, I think its a great idea so you dont have to take it all out of one paycheck but can split it Quote Link to comment Share on other sites More sharing options...
Guest swank Posted November 10 Report Share Posted November 10 It's true...I once had a mortgage that I paid once a week and it worked for me! Just seems less when you pay a smaller amount every week and I got a break on the rate. Quote Link to comment Share on other sites More sharing options...
abstractrhythm Posted November 10 Report Share Posted November 10 It's true. However, they are charging you (at least my bank does) for something that you could simply do on your own. Just pay one extra mortgage payment extra each year or you can add an amount equal to one twelfth of your monthly mortgage payment to each of your monthly payments.... Quote Link to comment Share on other sites More sharing options...
Guest RzO Posted November 10 Report Share Posted November 10 ah the biweekly program, indeed u make one extra payment a year and it cuts the loan to 27 yrs, the only reason u should do this imo, is if u are planning on staying in your place fore a long time, if u intend to sell within 5 years or even a lil more might as well just keep less money out of your mortgage and into better investments, as money in ur house isnt really making anything. lol i too have my first mortgage payment due on 12/1, i just got the paper today Quote Link to comment Share on other sites More sharing options...
Guest lyrik Posted November 10 Report Share Posted November 10 Do it - biweekly...trust me...if you need any back up just ask roque or talk to my wife...we did it and it works...pays it down quick. Quote Link to comment Share on other sites More sharing options...
Guest slamminshaun Posted November 10 Report Share Posted November 10 Not a scheme...if you plan to be there a long time and you want to pay it down quicker, than go for it. Quote Link to comment Share on other sites More sharing options...
Bling Posted November 10 Report Share Posted November 10 yes biweekly u pay ur mortgage off quicker.... Quote Link to comment Share on other sites More sharing options...
Guest swank Posted November 10 Report Share Posted November 10 BTW!Confrickengratulations! unless I missed the thread? Quote Link to comment Share on other sites More sharing options...
MIRZA1414779019 Posted November 10 Report Share Posted November 10 It's true. However, they are charging you (at least my bank does) for something that you could simply do on your own. Just pay one extra mortgage payment extra each year or you can add an amount equal to one twelfth of your monthly mortgage payment to each of your monthly payments....Congratulations C!!!I agree you can simply do it on your own. Honestly either way it will help save you money in the long run. Quote Link to comment Share on other sites More sharing options...
Guest slamminshaun Posted November 10 Report Share Posted November 10 It's true. However, they are charging you (at least my bank does) for something that you could simply do on your own. Just pay one extra mortgage payment extra each year or you can add an amount equal to one twelfth of your monthly mortgage payment to each of your monthly payments....Congratulations C!!!I agree you can simply do it on your own. Honestly either way it will help save you money in the long run. While its true you can essentially do the same thing yourself, keep in mind the average American claims 0 exemptions with their employer so that the government takes out more then what they should in taxes just so they can get that big refund every year. Even though we could claim 1 or 2 exemptions and save the money on our own, there's something about a forced savings plan that works for alot of people. Quote Link to comment Share on other sites More sharing options...
CrzyC1414779017 Posted November 11 Author Report Share Posted November 11 Thanks guys! I appreciate all of your input. And yes, I finally bought a condo in Boca. It was a long process as I wasnt sure whether or not I should do it and ended up backing out once. However, that ended up being a good move cause it made the guy lower his price...WOOHOO!!! Quote Link to comment Share on other sites More sharing options...
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