2006-08-04 08:11:32 · 4 answers · asked by netnut55 1 in Business & Finance ➔ Personal Finance
If you're talking about bi-weekly payment, almost any bank does that. Or just obtain a loan with a "soft prepay" - you can pay up to 20% of the loan per year (usually). Then you can pay more and reduce both the term of the loan and the interest paid. If you like, I can discuss some more specific options with you as well. You can e-mail me at jskerrett@ffbcorp.com
2006-08-04 08:17:10 · answer #1 · answered by Jonathan S 2 · 0⤊ 0⤋
Why pay for a service you can do yourself?
Here's what the bank/mortgage company does:
They take out 1/2 payment every two weeks, instead of twice monthly to make 13 payments per year.
To do it yourself:
Multiply your mortgage payment by 13, then divide by 12. That's your new monthly mortgage payment. When you send in your monthly payment, specify that you want the additional amount to go to the principle.
ex: $1000 monthly payment X 13 months = $13,000 yearly
$13,000 / 12 = 1083.33 monthly (you an always round up)
Or (what we do):
Write in your check register/financial software a 1/2 payment every two weeks. Send your regular payment each month until you have a month with three 1/2 payments (this will happen twice each year), then send a payment and a 1/2 specifying the additional amount goes to principle. Twice each year, you'll send an extra 1/2 payment.
ex. $1000 monthly payment = $500 every two weeks.
twice yearly, you'll be able to pay $1500 in one month.
Same thing, no bank fees.
2006-08-04 22:53:42 · answer #2 · answered by homeschoolmom 5 · 0⤊ 0⤋
If you are referring to the new mortgage product called the Home Ownership Accelerator, you can ONLY obtain it threw a mortgage broker. Depending on your situation, you may be able to pay off your loan in half the time or less. For more information, learn more at www.cmghome.com. If you are in CA, I could help you with this program. If you are simply talking about bi-weekly payments, the advice given by other answer providers is sound. These are all excellent programs to help you pay off your home faster.
2006-08-04 19:49:17 · answer #3 · answered by comic1965 2 · 0⤊ 0⤋
Most big ones do, and if the bank/credit union doesn't, then you can pay a service to set it up for you. Even if you have to pay it is well worth it. You can pay a 30 year mortgage bi-weekly as opposed to monthly and pay it off in 22 years! This is what I'm doing and it is fairly painless. I only had to pay my existing bank who holds my mortgage $100 to set it up and they pull it right from my checking account. Great idea to do this!!
Paying extra also helps pay off high interest credit cards and auto loans much faster as well.
2006-08-04 17:03:24 · answer #4 · answered by Runnin for my life '73 2 · 0⤊ 0⤋