Junk mail is the same in Ocean Pines MD or Ocean City Maryland or Main Street USA. I have received lots of emails and snail mail from companies selling bi-weekly loan programs. They encourage me to pay my loan off faster by doing bi-weekly loan payments with their company (who by the trick of the eye seems to be my lender on the envelope). It must be a great plan right?
Knowing we all want to save money our mortgages are a great place to start, after all it is the largest payment for most Americans. I checked out these offers with one of my trusted mortgage associates Shawn Hunt with MNET Mortgage to get his company and personal take on these products.
Please check out their Recommendation’s.
- It’s all about an extra payment, not frequency If you make a half-payment every other week, you actually make 26 half-payments or a total of 13 full payments in a year. That one extra monthly payment is what pays your loan off early, not the act of paying bi-weekly.
- Pre-Payments Held In many programs, the extra portion of your payment is held for up to six full months before it's used to reduce your balance. During that time, the company earns interest on your money.
- Upfront FEES Most bi-weekly payment programs have a set-up fee of hundreds of dollars.
Enjoy DIY savings instead Use the money you would have spent on the program’s fee to make your first REAL pre-payment toward principal. Divide your regular monthly payment by 12 and add that amount as extra toward the principal with each payment.
- The process is in your control. There may be times when your extra money is better invested elsewhere. There’s no need to cancel a program to use your own funds.
- Your loan will be paid off even faster because you diverted the cost of upfront fees to your principal.
- Your dollars go to work for you when they are paid rather than many months later.
Hope this information is helpful to you I know which way I going and my husband is always on board with the DIY way. If you have any further questions please feel free to give me a call at 410-629-9070 anytime. Shawn is always available at 443-783-0910 for mortgage questions.
Ocean Pines, MD Homes For Sale - Bernie Flax Broker/Owner, REALTOR®
I am very fortunate to live and own my EXIT Realty At The Beach office in the community of Ocean Pines outside Ocean City MD. I specialize in making your beach home ownership dreams come true! Text Bernie to # 85377 for current listing updates Call Bernie Flax @ 410-629-9070