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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Do you pay your mortgage monthly or bi-weekly? w/poll
How do you pay your mortgage? If you pay bi-weekly, do you find that it reduces your principal faster?
Message edited 7/11/2011 3:18:14 PM.
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Posted 7/11/11 3:04 PM  |
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Mill188
LIF Adult
Member since 3/09 3073 total posts
Name:
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Paying bi-weekly will reduce your mortgage principal faster because you will be making an extra mortgage payment each year. Instead of 12 monthly payments, you will be making 26 payments - or 13 months.
We pay monthly but pay extra each month so we're making at least 2 extra payments a year.
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| Posted 7/11/11 3:31 PM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by Mill188
Paying bi-weekly will reduce your mortgage principal faster because you will be making an extra mortgage payment each year. Instead of 12 monthly payments, you will be making 26 payments - or 13 months.
We pay monthly but pay extra each month so we're making at least 2 extra payments a year.
ty
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| Posted 7/11/11 3:36 PM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
You can make your own extra payment every month or just make an extra one at the end of the year. Most banks charge you a fee, I believe, to pay your mortgage bi-monthly.
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| Posted 7/11/11 3:43 PM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
I pay monthly... Then when our tax return comes in each yr, we pay extra towards principal... It still will cut down on how many yrs we're paying off our mortgage but you are technically paying less interest if you pay bi-weekly......
take a look at this
Message edited 7/11/2011 3:56:08 PM.
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| Posted 7/11/11 3:49 PM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by MaZz
but you are technically paying less interest if you pay bi-weekly......
take a look at this
This is what I was really questioning. I already pay extra a month towards principal, but I wanted to know if I pay bi-weekly, will it lower the interest even more.
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| Posted 7/11/11 3:57 PM |
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MaZz
* Lovin my baby girl!!! *
Member since 2/09 6243 total posts
Name:
Gina
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by neener1211
Posted by MaZz
but you are technically paying less interest if you pay bi-weekly......
take a look at this
This is what I was really questioning. I already pay extra a month towards principal, but I wanted to know if I pay bi-weekly, will it lower the interest even more.
From what Ive read, if the bi weekly amt gets applied as soon as it is received, of course it will reduce the monthly interest.... but if the bank holds onto that extra payment and pays the loan once both payments have been made for the month, then essentially you're saving nothing... Its like giving the bank your money to do whatever they wish with it for 2 weeks... hope this makes some kinda sense LOL 
disclaimer: I am no expert on this subject... please refer to your financial institution for more details 
Message edited 7/11/2011 4:07:19 PM.
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| Posted 7/11/11 4:05 PM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by MaZz
Posted by neener1211
Posted by MaZz
but you are technically paying less interest if you pay bi-weekly......
take a look at this
This is what I was really questioning. I already pay extra a month towards principal, but I wanted to know if I pay bi-weekly, will it lower the interest even more.
From what Ive read, if the bi weekly amt gets applied as soon as it is received, of course it will reduce the monthly interest.... but if the bank holds onto that extra payment and pays the loan once both payments have been made for the month, then essentially you're saving nothing... Its like giving the bank your money to do whatever they wish with it for 2 weeks... hope this makes some kinda sense LOL
That makes perfect sense, I didn't even think of it this way. I 'assumed' that they apply it right away. Hmm, something to look into. ty!
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| Posted 7/11/11 4:08 PM |
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TnDM10
LIF Adolescent
Member since 2/09 781 total posts
Name:
Teri
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
we pay monthly
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| Posted 7/11/11 4:09 PM |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Bi-weekly for our 2nd mortgage - the bank that hold the loan offers it at no cost so we figured we'd take advantage as it takes years off your loan and saves you a crazy amount of money in interest. We also added a little extra towards the principal in addition to the bi-weekly plan.
1st mortgage - we pay monthly because Chase doesn't offer bi-weekly plans. We would have to use a third party to handle the transfer of funds and pay a fee and we didn't want to do that. When we can we will send extra money towards the principal on that loan so hopefully we'll save some years on that loan too!
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| Posted 7/11/11 9:04 PM |
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CAMCaps
Live Laugh Love Run
Member since 6/07 4922 total posts
Name:
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
We pay monthly plus an additional 1/12 of a payment each month...works out to one extra payment a year.
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| Posted 7/11/11 9:05 PM |
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ali120206
2 Boys
Member since 7/06 17792 total posts
Name:
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
We pay monthly and then make an extra payment each year. If we continue at this rate, our loan will be paid off in 23 years instead of 30 and we'll save a large chunk of $$.
Our bank charges fees to pay bi-monthly so I didn't think it was worth it to do.
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| Posted 7/12/11 9:29 AM |
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KimberlyScott
Graceyn=My World <3
Member since 10/08 4173 total posts
Name:
Kimberly
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Bi weekly. Our bank does not charge a fee for this.
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| Posted 7/12/11 12:18 PM |
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Erica
LIF Adult
Member since 5/05 11767 total posts
Name:
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
we pay monthly. I usually round to the next thousand, so it is quite a bit extra going in.
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| Posted 7/12/11 12:55 PM |
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JoJo2010
Happy Family
Member since 8/09 6266 total posts
Name:
JO
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by CAMCaps
We pay monthly plus an additional 1/12 of a payment each month...works out to one extra payment a year.
same here!
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| Posted 7/12/11 12:57 PM |
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cutie
LIF Adult
Member since 2/06 1893 total posts
Name:
Janine
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Our bank doesn't offer a bi-monthly payment option. We had wanted to pay bi-monthly, so what we did instead is this:
1) We signed opened a new account at our bank for the monthly payment to be debited out of.
2) We had 1/2 of our mortgage amount direct deposited into the new account from DH's direct deposit. The balance goes into checking.
3) We will take the extra mortgage payment that is left over at the end of the year (since we will have 26 deposits made, so a total of 13 monthly payments) and apply that toward principal.
It was a little complicated to set up, but so much easier now - and I don't have to think about it at all.
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| Posted 7/12/11 10:40 PM |
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BeachGal
LIF Adult
Member since 2/10 2827 total posts
Name:
J
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
I pay monthly but I pay extra towards principal so think the amount of years taken off works out about the same. i have wells fargo and they do offer bi-weekly for free.
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| Posted 7/12/11 10:43 PM |
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Siren77
LIF Adolescent
Member since 9/09 828 total posts
Name:
Siren77
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Monthly and the exact amount due.
THEN, I write out a seperate check on specific intervals ie a special date or holiday (so I don't forget). I like being able to write on the check "For Principal Only" I've heard many stories of ppl adding $ each month and it not going to principal which then defeats the whole purpose!
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| Posted 7/13/11 7:37 AM |
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maymama
my little loves
Member since 8/08 18453 total posts
Name:
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
bi-weekly, of course it reduces principal faster, in the months that there are three pay periods (2x per year) the total amount goes to pricinpal - no interest paid.
Message edited 7/13/2011 8:59:15 AM.
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| Posted 7/13/11 8:57 AM |
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Irishgrl1017
It happened :)
Member since 9/08 1872 total posts
Name:
Colleen
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
We pay monthly but when we can send in extra money towards the principle
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| Posted 7/13/11 10:32 AM |
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neener1211
:-)
Member since 4/07 22952 total posts
Name:
J
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by BeachGal
I pay monthly but I pay extra towards principal so think the amount of years taken off works out about the same. i have wells fargo and they do offer bi-weekly for free.
Does anyone know if Wells Fargo applies the bi weekly payment, or do they wait for the entire payment before they apply it?
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| Posted 7/13/11 11:11 AM |
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Cheeks24
Living a dream
Member since 1/08 8589 total posts
Name:
Cheeks
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by JoJo2010
Posted by CAMCaps
We pay monthly plus an additional 1/12 of a payment each month...works out to one extra payment a year.
same here!
Us too!
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| Posted 7/13/11 11:11 AM |
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Mere09
So Dam* Lucky
Member since 10/08 6368 total posts
Name:
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Re: Do you pay your mortgage monthly or bi-weekly? w/poll
Posted by Mill188
We pay monthly but pay extra each month so we're making at least 2 extra payments a year.
Exactly this.
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| Posted 7/13/11 1:28 PM |
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