The only thing I would add, is that I think you have to be a month ahead and THEN pay the bi-weekly amounts. You cannot start off paying bi-weekly, unless you are set up through the bank itself who did your mortgage. (The fee kind I believe)
You can do this without paying the fee, by doing it the way I mentioned. You are choosing yourself to pay bi-weekly and could change if you needed to, versus being required to.
For Example..easiest if you have a new loan..
Today is March 13. Your first loan payment is Due April 1st.
If you get paid bi-weekly and have the money to pay an extra payment before starting your loan..
Pay today the Full April Payment :: Let's say it's 2000.00.
On your next payday: let's say March 15th. Pay half. 1000.00
Next payday March 30th. Pay the other half. 1000.00
You have now paid your April Payment early, and have started the bi-weekly.
This way the bank SHOULD be applying your half payments when made because you are considered Current on your loan.
IF you paid 1/2 on March 15, and 1/2 on March 30th and it was the APRIL Payment...
I don't believe the first 1/2 payment will be applied UNTIL you pay the 2nd Half of the payment on the 30th.
I THINK it only works if you are already paid first.
I hope that makes sense.
OF COURSE , PLEASE check with your Own Mortgage company to verify first.
The only thing I would add, is that I think you have to be a month ahead and THEN pay the bi-weekly amounts. You cannot start off paying bi-weekly, unless you are set up through the bank itself who did your mortgage. (The fee kind I believe)
You can do this without paying the fee, by doing it the way I mentioned. You are choosing yourself to pay bi-weekly and could change if you needed to, versus being required to.
For Example..easiest if you have a new loan..
Today is March 13. Your first loan payment is Due April 1st.
If you get paid bi-weekly and have the money to pay an extra payment before starting your loan..
Pay today the Full April Payment :: Let's say it's 2000.00.
On your next payday: let's say March 15th. Pay half. 1000.00
Next payday March 30th. Pay the other half. 1000.00
You have now paid your April Payment early, and have started the bi-weekly.
This way the bank SHOULD be applying your half payments when made because you are considered Current on your loan.
IF you paid 1/2 on March 15, and 1/2 on March 30th and it was the APRIL Payment...
I don't believe the first 1/2 payment will be applied UNTIL you pay the 2nd Half of the payment on the 30th.
I THINK it only works if you are already paid first.
I hope that makes sense.
OF COURSE , PLEASE check with your Own Mortgage company to verify first.
Posted by: nhmom at March 13, 2009 11:37 AM in response to biweekly mortgage payment