Beware of Bi-Weekly Mortgage Reduction Services and
Savings Programs
These "Reduction Services" and "Savings
Programs" are charging you fees to "make a bi-weekly mortgage
payment" for you. The enticement is that they will save you an impressive
amount of money on your mortgage and reduce the number of years you pay on your
mortgage.
The enticement is that they will make bi-weekly
mortgage payments for you.
The real story is that they are not actually making
bi-weekly payments on your mortgage. They are making bi-weekly
deductions from your bank account. These funds are placed into an account
from which your monthly mortgage payment is made (which only takes 24
deductions - but during the course of a year 26 deductions will be made from
your account). With the extra 2 deductions, the "Service" makes an
additional mortgage payment. In other words rather than making 12 mortgage
payments, 13 payments are made.
The enticement is that they are providing a special
service to you that would either not be possible for you to get on your own or
that you won't have the time or discipline to make it happen.
The real story is that you can easily make an
additional mortgage payment each year. An easy way to do this is to have your
mortgage payment automatically deducted from your account each month with an
additional 1/12 payment to be applied to the principal amount. At the end of 12
months, you will have made an additional payment. And you won't have to pay any
fees to a "Service".
Making one extra mortgage payment a year will knock years
off your mortgage and save you thousands of dollars.
Roxy Redenbaugh
ACMC, Loan Consultant
Branch Manager
www.roxyloans.com
NMLS#269926
Roxy Redenbaugh
ACMC, Loan Consultant
Branch Manager
www.roxyloans.com
NMLS#269926
1 comment:
Yes, that's an excellent tip to slightly increase the monthly payment. Whenever you receive an increase in income, just use that increase to further adjust your monthly mortgage payment.
Post a Comment