DO-IT-YOURSELF BI-WEEKLY MORTGAGE ACCELERATION
Principally, it's a principal principle. (Say that
five times quickly!) The idea is that you can shave
off a lot of interest over the life of your mortgage
if you take your monthly payment, cut it in half, and
pay that amount every two weeks. The trick? Every
two weeks is a little more than twice a month. You
get about 26 bi-weekly payments in per year, rather
than 12 monthly payments. You are effectively making
an extra payment every year, which cuts down your
principal and the corresponding interest charges. But
since you're spreading this extra payment over a year,
you hardly see it. It's spending less the easy way!
It's SO easy, in fact, that people have made a business
out of promoting this plan. If you didn't opt out of
your lender's marketing list, you'll probably get a
letter with your loan information, with interest savings
in the tens of thousands of dollars, and an offer to
let Biweekly Buddies Inc. handle all of this for you.
Then you read on with your magnifying lens. A fee of
several HUNDRED dollars after becomes payable to "The
Buddies" (and non-refundable to you) after a few months
of enrollment in the program. Then, there's a monthly
service fee of a few dollars as long as your enrolled
in the program. But hey, you're saving tens of thousands
in interest, right?
Click here to do this yourself!
