Question:

What are the benefits of bi-weekly mortgage payment programs?

Answer:

The main benefit of bi-weekly mortgage payment programs is the quicker amortization of a mortgage loan resulting in great savings on interest.

The way bi-weekly mortgage payment programs work allows you to make 26 half-payments which results in making 13 full monthly payments and obviously leads to quicker amortization and savings benefits.

However, enrolling in bi-weekly mortgage payment programs or using a bi-weekly mortgage company to make your payments for you can cost you over $1000 in some cases. Even though some borrowers will be happy to use some professional help with a company, most borrowers won't feel comfortable having to pay excessive fees for a bi-weekly mortgage payment program.

The way to reap the benefits of a bi-weekly mortgage payment programs without paying exorbitant fees is to simply pay a little extra towards the principal every month, or make a full 13 payment once a year. Consult with your lender how they'd prefer to go about that. The bi-weekly mortgage payment programs are designed to help you rid of debt quicker, not to have lenders charge you for additional services.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.9/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: