Pamela J. Gordon
941.758.0600 office 248.770.7066 mobile/text email@example.com
The market seems overwhelmed by the number of companies offering "Bi-weekly Mortgage Reduction Services" or "Bi-weekly Savings Programs."Proceed with caution because this may not be what you think it is! Bi-Weekly Mortgage Services and Savings Programs are not necessarily a good thing for you. These programs are charging you fees to "make a bi-weekly mortgage payment" for you. Think about the name of the program, "bi-weekly". That is not the same as bi-monthly. They are making a payment every 2 weeks, 26 times a year. That is equivalent to 13 mortgage payments a year. The enticement is that they will make bi-weekly mortgage payments for you and you will save on the amount of interest you pay over the years on your mortgage. 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 theory is that they are providing a special service to you. All you really have to do is either make an extra mortgage payment a year or divide your mortgage payment (principal and interest only, not escrow amounts) by 1/12, and pay that much extra each month. You will accomplish the same thing and save yourself money.
We can structure a mortgage for you with your choice of amortization schedules from 7 years to 30 years. This will let you reach the goal you define. Or we can just tell you what payment to make to have your mortgage paid off by the date you chose. These options will not cost you extra and actually may save you with a lower interest rate, too.
Please talk to us before you sign up with any service like this. There are other ways to reduce your mortgage balance and interest that you pay without incurring a cost and with more flexibility for you!