One more vote for the Bluestar RNB series. Can't beat a 22,000 BTU burner with even heat distribution. Add in a convection oven, a great broiler, and good looks and you've got a winner.

Posted by: elvis at July 14, 2009 10:40 AM in response to Range Suggestions

To clarify, with a bi-weekly mortgage, you're paying half the monthly amount 26 times per year.

In other words, you're making 13 months of mortgage payments over a 12 month period, thereby paying down the principal faster.

Posted by: elvis at January 21, 2009 10:50 AM in response to biweekly mortgage payment

It is a forced extra payment and I THINK that if you can swing this, you're better off with a 15 yr mortgage assuming the difference in interest rate is favorable. There should be an online calculator to help you figure it out. Of course, the 30 year with extra payment gives you more flexibility -- you could go back to the 12 payments if your financial picture changes, etc.

Posted by: Ringo at January 21, 2009 11:15 AM in response to biweekly mortgage payment

We've also added an additional payment per year on top of our bi-weekly payments by dividing one full mortgage payment by 26 and adding that (pretty nominal) amount to the bi-weekly payments. In doing so it's projected that we'll pay off our 30 yr fixed mortgage in 21yrs. saving just under 100K in interest. An example is shown below:

If the monthly mortgage payment is $3,000/mo. that $36,000 a year. If you add one extra payment a year AND scheduled your payments bi-weekly instead of monthly you'd knock off an additional $6,250 from your principle every year. My napkin math is below.

$3,000/12mo. = $250
$3,000 + $250 = $3,250 (to make the one extra payment a year)
$3,250/2 = $1,625 (paid bi-weekly)
$1,625 x 26wks. = $42,250/yr.

vs.

$3,000 x 12/mo. = $36,000/yr.

$42,250 - $36,000 = $6,250.58 (additional off the principle each year)

If you can swing the extra cash every two weeks it sure makes a huge difference over the long run.

Posted by: TownhouseLady at January 21, 2009 11:23 AM in response to biweekly mortgage payment

The problem with a 15 or 20 yr. mortgage is that once you lock it in that's it, your stuck. In making extra payments on a 30 yr. mortgage you have better flexibility. Say one of you looses you job you can always revert back to the regular monthly payment to alleviate some of the burden. You can't do that with a 15 or 20 yr. mortgage. Unless you have huge cash reserves in case of emergency that's a scary prospect.

Posted by: TownhouseLady at January 21, 2009 11:27 AM in response to biweekly mortgage payment

looses? duh...I meant loses.

Posted by: TownhouseLady at January 21, 2009 11:31 AM in response to biweekly mortgage payment

Hey Cantafford Carroll...everybody's right. You CAN save a bundle on interest if you do pay biweekly. However, I'm going to say be more strategic than the bank wants you to be.

You'll probably notice if you look over the documents that the bank sent you with this offer, that they'll set it up for $INSERT FIGURE and charge $15 month for the service. If you just look at the MONTHLY charge, that's about $200/year for something YOU CAN DO FOR FREE.

Very few residential mortgages have prepayment penalties. Simply add the "extra principal" you can afford each month...most mortgages bills have a line specifically for that, or make one additional payment each year, and you'll reap the benefits without them getting $2000 of your money to set it up. The beauty of DIY in this case, is that if there is a month/year when you can't swing it, you don't have to. By all means pay extra on your principal, when you can, but don't pay somebody for the convenience of setting up the statements for you.

Posted by: Minmin at January 21, 2009 11:31 AM in response to biweekly mortgage payment

CAVEAT EMPTOR

This is a money making opportunity for your bank. You are able to make additional principal payments on your own in most cases.

You should also check to see if the payment is applied to your account on a biweekly basis or if they are applied on the original due date. Those that apply the payment on the due date are collecting a fee plus they are receiving a float on the use of your funds.

For those of you who have a mortgage where the payment is applied when made have a huge advantage because the timing of the payment has an enormous impact on the total interest that accrues on the loan. However this is becoming less and less common.

There are multiple methods for calculating interest on your loan that are permissible from a regulatory standpoint. Not all of them are to your best interest. Some methods will actually accelerate the interest payments into the early portion of the the loan with principal payments being a larger component later in the life of the loan. This creates a disadvantage to people who like to prepay their principal.

Please look over the documentation of how the funds are applied and to see if you can do the same yourself without a fee.

Posted by: Ozymandius at January 21, 2009 11:49 AM in response to biweekly mortgage payment

yeah, townhouse lady, that why I said the 30-yr gives you more flexibility ... if your financial picture changes. but sometimes, the gap in interest rates can make it pretty attractive

Posted by: Ringo at January 21, 2009 11:51 AM in response to biweekly mortgage payment

Your payments will not go down if you reduce your principal through these methods. If you have any questions about the stability of your income sources or the amount of money you have set aside in a rainy day fund (at least 8 mths of expenses), don't make extra payments. Instead put it in a rainy day fund. You'll have the peace of mind that you can get through the next year of two. You can always start making extra principal payments once the crisis is over.

Posted by: Ozymandius at January 21, 2009 11:56 AM in response to biweekly mortgage payment

Get yourself a mortgage calculator. THey're all over online, and you can do what-if scenarios all day long.

I use Mortgage Advisor
http://www.mortgage-software.net/

But I've had that a while, there are probably plenty of free ones out there. Check tucows.com or similar.

Posted by: denton at January 21, 2009 2:29 PM in response to biweekly mortgage payment

Sorry just got back to the office. I think everyone already covered anything that I would have added. You need to check with your existing lender to see if they allow it and if there are any fees with it. Even if there are you may still come out ahead but you would need to do the math. Most loans do not have pre-payments in NY so you can do it yourself but check with your lender first to see if they are attributing it to the principal or just pushing back your next payment. Your payment will not go down but you will be shortening the life of your loan.
I prefer the 30yr fixed mortgage if you are young and just starting out in life but I sometimes recommend the 15 yr fixed for individuals that have significant equity in their property can afford the payments and are hovering around the age of 50 or so. That way they can time their loan payoff for retirement.

adahill@approvedfunding.com

Posted by: Adam Dahill at January 21, 2009 2:43 PM in response to biweekly mortgage payment