Posted by Jim Rayner on July 24, 2003 at 16:02:40:
You can accomplish the equivalent savings of a biweekly payment by sending in just the monthly payment plus one twelfth of a normal payment to be applied to the principle balance each month. This should be less apt to cause posting error. Besure to state on the check that the extra funds are to be applied to the priciple balance.
I have been doing this for years with never a single glitch and no fees to save the same on the interest as a biweekly plan.
I have a 30 year loan on my property in which PIE payments are 907/month. I tried paying weekly through my online banking of 250.00 last month, which would end up sending more money towards the principal. Although they received all the payments, the mortgage company is saying they only accept monthly payments, because when the weekly payments are sent, they are not applied properly(they dont know if it should be applied to principal, interest or escrow). The mortgage company has an outside company that will do bi-weekly payments, but they charge a ridiculous 300.00 fee, plus a monthly maintenance fee. Is there a way to make weekly payments the mortgage company has to accept through my online banking?