Question:

Can the bimonthly mortgage payment reduce my mortgage term?

Answer:

No. A bimonthly mortgage payment can only reduce the term of your mortgage with a couple of months, or less. If you are offered to switch from regular mortgage payment to a bimonthly mortgage payment for a fee (some lenders will ask for a several hundred fee), to achieve an early pay off of your mortgage, this is a rip off.

Actually, if you are contributing some additional money as $50 or $100 towards your mortgage payment, you may be able to actually reduce the repayment term of your mortgage. You should be able to negotiate this kind of prepayment or bimonthly mortgage payment with your lender. If you are required to pay a fee to make a prepayment or a bimonthly payment, it may not be worth it.

There may be bimonthly mortgage payment programs that will offer you to save over $50,000 in mortgage payments, and cut off five years or more with a bimonthly mortgage payment plan. This, however, cannot occur if you are only making your mortgage payment twice a month. Only if you are contributing some additional cash towards your principal, you will be able to succeed in reducing your mortgage term and overall payment.

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