Nationwide Biweekly Administration

Paying off your Mortgage with Biweekly Payments

Most people who buy a house need to obtain a mortgage. Most loan companies will have you pay your mortgage once a month, which are twelve payments each year. Many lenders now are offering bi-weekly mortgage payment plans. Therefore, you would pay your mortgage every other week instead of once a month.

Paying your mortgage bi-weekly will allow you to pay one extra monthly payment over the course of the year. You will make 26 mortgage payments each year. This will shorten your loan and save you tens of thousands of dollars.

Before agreeing to a bi-weekly mortgage plan, you will want to inquire as to if there is a pre-payment penalty. Most lenders now will not penalize you for paying off your mortgage early, so make sure that they will accept extra payments.

You will also need to make sure that your extra payment will be used for the principle and that the bi-weekly money is used immediately. Some lenders will wait until the second payment has been received before they post the payment. If they do this, you will not save any money.

You also will want to make sure that there are not any fees associated with the bi-weekly payments. Sometimes companies say that they want to charge a fee, such as $400 for switching to a bi-weekly mortgage. Do not fall for this. It should not cost anything to make extra payments.

Unfortunately, some lenders can be difficult to deal with. They might ask you to completely refinance your mortgage in order to switch to a bi-weekly plan. Research your options, so that you will know what is best for you.

It is very simple to pay your mortgage bi-weekly. Many lenders can just take the money out of your bank account. Bi-weekly mortgages can get your loan paid off quicker while also saving you money.