If you pay OVER you monthly mortgage payment.....what happens?

[TwinkleToes77]

Originally posted by: Nutdotnet

Originally posted by: TwinkleToes77

Originally posted by: fenrir
If you can, pay your mortgage bi-weekly (break your monthly payment in half). This will also make a huge difference in paying of the mortgage early. The benefit is even greater than just paying extra when your payment is due. It shaves off several years on a 30 year mortgage.

Matt

Thats how we pay ours.. bi-weekly.

I was looking at that bi-weekly...is there any way to change an existing monthly mortgage to a bi-weekly?

I seem to think we started out 1 monthly payment when we got this mortgage, and then shortly afterwards shifted it to bi-weekly. I'm not quite sure though.

PS.. Just talked ot the husband and he said that he had to just sign some paperwork switching it over and that was it.

 

[kranky]

Big warning about biweekly mortgages - some aren't really biweekly. You'll only get the benefits if your payments are actually applied to your account biweekly as well.

Some places set up a so-called biweekly program, but all they do is hold your payment until the monthly due date. You do get some savings because over a year you are making 13 payments instead of 12, but you could do the exact same thing yourself (assuming payments are only credited once a month) by paying extra toward your principal. Plus, if you do it yourself, you aren't locked in to it and if things get tight you can back off.

 

[xSauronx]

Originally posted by: Quixfire

Does this amount get automatically taken off the principle?

Yes, unless you state otherwise.

Your next monthly payment would still be $770.70 correct?

Yes, that never changes unless you refinance.

i didnt refinance and my payment changed. i was paying $500/mo on a 455 and change payment, and the next year it started out at 445 and change

why?

 

[Bryophyte]

Originally posted by: xSauronx

Originally posted by: Quixfire

Does this amount get automatically taken off the principle?

Yes, unless you state otherwise.

Your next monthly payment would still be $770.70 correct?

Yes, that never changes unless you refinance.

i didnt refinance and my payment changed. i was paying $500/mo on a 455 and change payment, and the next year it started out at 445 and change

why?

Escrow accounts are reexamined annually and adjusted according to actual expenses. Could be that was the change.

 

[Hayabusa Rider]

Originally posted by: kranky
Big warning about biweekly mortgages - some aren't really biweekly. You'll only get the benefits if your payments are actually applied to your account biweekly as well.

Some places set up a so-called biweekly program, but all they do is hold your payment until the monthly due date. You do get some savings because over a year you are making 13 payments instead of 12, but you could do the exact same thing yourself (assuming payments are only credited once a month) by paying extra toward your principal. Plus, if you do it yourself, you aren't locked in to it and if things get tight you can back off.

Yep, signed a mortgage today and was told exactly the same thing. Best to do it yourself.