Question:

What are bi monthly mortgages?

Answer:

Bi-monthly mortgages allow that you make your mortgage payment twice a month, rather than once. Although they are said to be very effective in reducing the repayment term, in fact you are usually able to repay your loan several months earlier at most.

There are many bi-monthly mortgage plans offered and lenders will often exaggerate the usefulness of those. Often, lenders will offer switching from a regular mortgage plan to a be-monthly plan for a fee. Borrowers who would like to use a bi-monthly mortgage plan, can simply adopt a bi-monthly mortgage payment practice rather than paying fees to convert to a special bi-monthly payment plan. All that is required is a little discipline on the part of the borrower to make 24 payments instead of 12. Bi-monthly mortgages may require that payments are made on the 1st and the 15th of the month.

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