Bi-weekly mortgage payment

[jinjuku]

PNC/National City is telling us that we need to use a 3rd party (pay for it) service to setup bi-weekly mortgage payments.

Is there an easy way around this? Can I simply go into my local branch on the 15th and make a half payment?

Can I do the same with extra principle payments?

Thx in advance.

 

[Halon451]

PNC/National City is telling us that we need to use a 3rd party (pay for it) service to setup bi-weekly mortgage payments.

Is there an easy way around this? Can I simply go into my local branch on the 15th and make a half payment?

Can I do the same with extra principle payments?

Thx in advance.

Sounds like a load of B.S. - do they offer a reason why they're going this route? Unfortunately I can't help much, my mortgage is through Bank of American (formerly Countrywide), so my payments are basically set up through my online banking login now. Depending on their reasons, they may or may not accept payments at local branches.

 

[cym_city]

They aren't forcing you are they?

Banks that push that while citing the interest savings are full of it. Let me guess, they want you to pay $500 in order to set it up too? Bi-weekly payments are no different than just making an extra payment once a year. Interest wise, you will be within a couple of dollars when it's all said and done. Unless you absolutely can't budget for more than two weeks at a time or have some other reason I wouldn't bother. Save the "administration" fee for new equipment and toys.

 

[dougg]

Your Mortage Contract states payment Schedule.......

They can't change the Payment Schedule witout your Permission. Ther may be a clause if You are behind, though
Doug S.

 

[chris357]

sounds liek you are asking to do this so you can pay your mortgage down faster. correct?

some laces just dont offer this type of deal and there payment processing does not allow for it.

so yes bi weekly payments is like doing 1 extra payment a year.. so just pay a little extra each month its pretty much the same.. just make sure you post where you want the extra money to go to principal not escrow or someplace else

 

[griffinconst]

sounds liek you are asking to do this so you can pay your mortgage down faster. correct?

some laces just dont offer this type of deal and there payment processing does not allow for it.

so yes bi weekly payments is like doing 1 extra payment a year.. so just pay a little extra each month its pretty much the same.. just make sure you post where you want the extra money to go to principal not escrow or someplace else

+1 on this, just be sure you don't have an early payoff penalty.

 

[chris357]

most conforming loans should not and most government loans(FHA/va) should not either. Sub prime... who knows?? get your mortgage note out and see what it says

 

[Stereodude]

Just pay a little extra each month. It'll work out to basically the same thing and not cost you extra. IE:, if you currently pay $2k a month instead of making 26 Bi-weekly $1k payments through some 3rd party (charging you a fee), make 12 monthly $2,166.67 payments.

 

[mtrycrafts]

PNC/National City is telling us that we need to use a 3rd party (pay for it) service to setup bi-weekly mortgage payments.

Is there an easy way around this? Can I simply go into my local branch on the 15th and make a half payment?

Can I do the same with extra principle payments?

Thx in advance.

Ask them why you cannot pay more to principle each month. There really should not be a reason why you could not. It's been a long time since I heard that one cannot pay off a loan ahead of time.
I had GMAC and there never was an issue and payed it off in well under 1/2 the time. There were a couple of glitches at first but it was taken care of and went smoothly thereafter, no extra charge, no 3rd party

And, as was mentioned, it will not hep a lot just doing 26 half month payments.

 

[gholt]

Just divide your monthly pmt by 12 and add that to your normal payment you make and it should apply to the principal. and you have made an extra payment each year.

 

[just-some-guy]

i put down 30%. on a 30 year. i made extra payments of what i could, as i could. i paid it off in 5 years. MOST people are not like me.

 

[Fenix]

If you ran the numbers you'd be surprised how much interest you pay to the bank on a 30 yr fixed. You end up almost paying double your mortgage amount. The company should allow you to pay more towards your mortgage than just the base amount. If they don't, then I would start asking questions and looking into the company to make sure things are legit.

 

[just-some-guy]

If you ran the numbers you'd be surprised how much interest you pay to the bank on a 30 yr fixed. You end up almost paying double your mortgage amount.

no need to run numbers. its all in the mortgage info. your first payment $1000, $990 goes to interest =
your last $1000 payment, $990 goes to principle.

people. sacrifice now. reap the benefits later !!! if done correctly and diligently, those benefits will come much sooner than they feel.

been there, done that.

 

[Fenix]

I'm a numbers guy. I like to see how things add up. So when my wife and I were looking for a house and a mortgage, I started putting together spreadsheets with all of the info. I put together a spreadsheet that tells me each payment how much goes towards interest and principle, then I added it all up at the end and was quite surprised at the result. You save yourself a lot of money over time if you can simply put in $20-$50 extra each payment.