Do I need lender approval to send in payments biweekly instead of monthly?
I’m in the process of buying a home at the moment. The Good Faith that I received from the lender indicated no prepayment penalties on the loan. I currently pay my car payments biweekly, because that’s how I get paid and it saves money on interest. I’ve heard of biweekly payment plan mortgages but do I need to get “approval” from the lender to send in two payments a month instead of one? On my car payments, I am on a monthly payment plan but I pay them twice a month and they have never had a problem with it or asked me to go on any sort of “plan”.
We bought our first house almost a year ago. Shortly after moving into our new house, we received a letter in the mail from our mortgage company telling us about this equity accelerator program that they refer their customers to in order to save interest on the loan and pay our house off 6-8 years earlier. Our mortgage total is $ 1061 a month with all taxes and insurance included. We ended up signing up for this program last summer and we have been doing biweekly payments ever since, with one extra payment a year. We are now wondering if this is really worth doing and are thinking about canceling the equity accelerator program and just going back to doing regular monthly payments directly through our mortgage company like we did in the very beginning. Would this be a smart thing to do, or should we stay in this program?