Community Answers

1. 

   3-31-11

   Hockey says:

   If you pay every week you pay 52 times. If you pay by month, you’ll only pay 12 times. Thus, you’ll pay more if you pay by week and will have paid off your mortgage quicker.

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2. 

   3-31-11

   walt17jr says:

   Paying weekly or twice a month will result in paying off the mortgage sooner. And since your total monthly expense is the same, it is a good long range plan. A rough estimate is that you would save $ 25,000.00 in interest. (Give or take a couple of thousand.) And pay off your mortgage about 2 years early.

   But check with your mortgage company before starting such a plan. Unless they are willing to accept that payment plan it may cost you. If they do not recognize the weekly payments as your mortgage payment, you would end up being delinquent. So you need to be sure how they will handle them.

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3. 

   3-31-11

   efflandt says:

   You certainly have to work that out with your lender “first” or the extra smaller than normal payments might be rejected or applied to principal, and your regular size payment may still be due by the due date.

   Also most mortgages are calculated monthly, so arbitrarily paying earlier in the month might not gain you anything, unless total for the month is more than is due.

   So you definitely need to work that out with your lender or misinterpretation could hurt you rather than helping you.

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4. 

   3-31-11

   STEVEN F says:

   There are NONE. Many banks won’t accept weekly payments. Those that do normally charge a fee to set up weekly payments and then REQUIRE you stay on the plan. The fee costs more than the interest saved.

   The only REAL savings results from making the equivalent of 13 monthly payments each year. You can match the savings within a few $ over the course of the loan by making ONE extra payment each year. EVERY mortgage already allows extra principle payments to be made at the same time as any regular payment.

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5. 

   3-31-11

   Ajalet says:

   Getting a mortgage is a big deal, but can also be very confusing. I was actually able to do a quick search and find some great information relevant to your question at this website:
   http://www.mortgagerichland.com

   Best of luck!

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