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Bi-Weekly Mortgage?

December 12th, 2008 at 03:59 am

For the past few months I have been toying with the idea of setting my home loan up to be a bi-weekly payment.

A true bi-weekly, with 26 payments a year.
I already pay extra on the principle but the bi-weekly would make a bigger payment over the year.

After carefully weighing both the advantages and disadvantages (yes i did accually write out a list of pros and cons), i'm still not positive it's the best way to go.

I know in the long run it will save me alot of money and cut time off my loan, but I'm still not convinced I can rearrange my other bills in a way that makes it all possible.

I did lookup my next 3 check month which is February, and wonder if I should just wait until then.

Does anyone have any experiance with bi-weekly payments? Do you like the way it works? Are there any real drawbacks? (not just the ones I dream up)

Any advice would be helpful and appreciated.

5 Responses to “Bi-Weekly Mortgage?”

  1. thriftorama Says:

    Here is an article about biweekly debt repayment. Maybe it will help you make a decision:

    http://www.middlepathfinance.com/2008/11/biweekly-debt-r.html

  2. monkeymama Says:

    They are expensive. & it is easier just to send in an extra principle payment every month/quarter/year. It's the same - but most mortgage companies have no fees to do it this way (bi-weekly = fees).

    You may want to consider depositing your extra paychecks to the mortgage. It will have the same effect.

    Also, then you won't be committed to the extra payments, say if you lost your job or something.

    I think they are a terrible deal, personally.

  3. swimgirl Says:

    I would not go with the bi-weekly mortgage. Monkey Mama's got it down! We considered it at one point, but it was not a good deal. We pay extra on the principal instead.

    I worried about what would happen if we had to pay late for some reason...like MM says, losing a job or something. Or some emergency...If you pay late, things get ugly.

    Keep up your extra payments!

  4. mom-from-missouri Says:

    Follow monkeymomma's advice. She hit the nail on the head.

  5. NJDebbie Says:

    My mortgage company charges $350 to set up bi-weekly payments. I say, no way. I simply send an additional $150 to make an extra mortgage payment a year.

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