As i pay only once a month by d/d i was wondering if there is a law that states i cant pay twice a month by cash, therefore reducing the interest to 2 x 2 week periods instead of 1 x four weekly.
2006-11-22 05:31:58 · 9 answers · asked by bodslot 2 in Business & Finance ➔ Personal Finance
Refinance for a better interest rate.
2006-11-22 05:34:24 · answer #1 · answered by Diamond in the Rough 6 · 0⤊ 1⤋
That's up to the mortgage provider. Some allow more frequent payments. The best thing you can do though is pay off the capital amount early, by overpaying your mortgage payment. Even a few extra dollars a month can shorten your mortgage term by months or years, saving you a huge amount in interest payments.
Refinancing MAY be advantageous, but often is not, if you take the full costs of the refinance into account. Make sure you find out all the points fees, closing costs, and commissions you'll end up paying on a refi, and compare that with simply paying an extra month's mortgage a year to reduce the principle.
2006-11-22 13:40:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
As others have indicated, many mortgage companies allow payments every 2 weeks. They usually charge a one-time fee to set this up. You can save a lot by doing that type of program.
You can make extra principal payments at any time, that would reduce your balance on which the interest is calculated. However, most banks and mortgage companies will automatically treat a payment made more than 10 days in advance of the due date as an extra payment to be applied to principal reduction, and still expect the full regular payment 10 days before or after the due date. If you were to split your payment without their approval, you could quickly find yourself being charged penalties or being put into default for not meeting terms.
2006-11-22 15:52:35 · answer #3 · answered by Andreas 3 · 0⤊ 0⤋
All depends on the company and your mortgage contract. Best thing to do is call a mortgage rep with the company you loaned out of and check. I have come across some companies in various areas that do not allow early payoff without a penalty.
2006-11-22 14:41:55 · answer #4 · answered by dougzinboston 4 · 0⤊ 0⤋
Very simple.
Call the loan servicing department, and talk to a customer representative. Explain that you would like to set-up biweekly payments, and tell them you would like to pay with cash. They will most likely ask you to pay by check and have that cash deposited to a checking account. But they should have no problem honoring biweekly payments.
Learn about credit, mortgage, and personal finance at:
http://www.thetruthaboutmortgage.com
2006-11-22 14:14:06 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Check your mortgage agreement to see if there are any prepayment penalties. If I were you, I would try to pay slightly more than the required amount and pay it every two weeks. You will knock thousands off the final mortgage payment.
2006-11-22 16:34:26 · answer #6 · answered by united9198 7 · 0⤊ 0⤋
I think what you're asking for is a bi-weekly payment plan. Most lenders allow you to do this. Since there are 26 bi-weekly payments per year, you pay an extra month's worth of payment per year. You can do this yourself, by making an extra payment per year.
2006-11-22 13:44:42 · answer #7 · answered by Justin 3 · 0⤊ 0⤋
Why dont you refi so a broker could get you a better rate. I actually work for a mortgage company as a processor. I would love to help you, if you need the help. Let me know.
2006-11-22 13:40:20 · answer #8 · answered by Gaby H 2 · 0⤊ 1⤋
some motgagers will let you you will have to call and ask. My motgage company sends me an offer to do this twice a year.
2006-11-22 13:35:42 · answer #9 · answered by mytwoboyz1 3 · 0⤊ 0⤋