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bi-weekly saver?

post #1 of 5
Thread Starter 
Does anyone participate in this with their mortgage? They pull half of your mortgage payment every other week? Is it worth it, and does it save money in the long run? I know it cuts off like 7 years of something like that. Does it free up a little money each month for those who are on it, too?
post #2 of 5
The way it works is once you sign up ( there is usually a fee involved around $300 or so ), they begin pulling your mortgage payments from your checking account on a biweekly basis. It does save money, because essentially you are making half of your payment 2 weeks early and not having to pay that extra interest.

It does not free up any money for you right now though. You still make the same payment, except its broken into 2 smaller ones instead of one large one.

Depending on your mortgage, you could save anywhere from $10,000 or much more. You could also set this up on your own though ( as long as you are disciplined enough to actually make the payment on your own ) and then you wouldn't have to pay that initial fee.

We don't do it on our mortgage, but I am very familiar w/ the procedure from when I worked at the bank.
post #3 of 5
Thread Starter 
I guess what I meant is it'll be easier to shell out $550 every other week, than make a $1000 payment in one shot. That's how kind of look at it.
They charge a $499 fee, but my loan officer said they can defer it and add a little into each payment, which is no biggie for me.
post #4 of 5
If its easier for you financially, then do it! If it means you'll make your payments more consistently then its probably better for you!
post #5 of 5
they don't charge a fee here in montreal canada, we pay bi-weekly, it does save interest and time, but so does the lump sums every year! (even more important, assuming you have the xtra cash!!!)
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