question about bi-weekly mortgage payments

**carolyns** · 02-06-2006, 04:22 PM

Hello All. I have heard and seen all the benefits of paying your mortgage bi-weekly. If I pay my payment online, can I still do this? Do I just break the payment in half and pay every two weeks? Also, what if I just want a certain amount to go to principal only, can I do this online? I'm willing to go to the bank to pay, but how will I know that they are crediting the principal. I've been meaning to start this for awhile now, I just need to know how to go about it. Thank you so much for any info!

**carolyns** · 02-06-2006, 04:26 PM

Sorry, I meant bi-monthly

**canadian gardener** · 02-06-2006, 04:34 PM

Carolyn, dh and I do this, but we set it up as an automatic withdrawal.

It helps that dh is paid every other week but even if not, this type of payment adds up to lower amounts of interest paid out, because you are eating away the principle faster.

Talk to the bank and get them to answer as it depends a lot on the policy they have.

George and I found very early on in the mortgage game that mortgage brokers get you a better deal than the banks. You still deal with the bank, but the broker goes in and negotiates better rates due to bulk buying power.

I'm not sure how it works in the states but I hope that is a help.

**dwallyfam** · 02-06-2006, 08:48 PM

Also if you do the bi-monthly check the fine print. A lot of banks/mortgage companies want to charge you a fee for doing it that way.

Over the course of a year you will be paying 1 extra payment. You could take your payment divide by 12 and add that to your monthly. That way you will still be paying the extra payment each year, but you would know that it is going toward the principal.

Kellie