Does anyone have experience with bi-weekly mortgage payments?

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My mortgage company is offering me a bi-weekly mortgage payment plan that will save me over $ 100,000 over the lifetime of the loan and I will have my mortgage paid off 7 years earlier.
Does anyone have any input or experience, positive or negative about this type of arrangement?

1 Comment
  1. Reply
    Laissez-Faire Guy
    April 30, 2011 at 12:03 am

    And I bet they are offering it with a hefty set up fee too, right?

    There’s no magic to how this weeks. By paying every 2 weeks, you are essentially making 26 half-payments or 13 whole payments every year, instead of 12.

    You can do this yourself without the hefty set up fee quite easily. If you paid an extra 1/12th of a payment every month, you’d accomplish the exact same thing. On your payment coupon, there should be a line for “Extra Principal” or something like that. Just fill out the payment coupon including that extra amount and mail in a check that is 13/12ths of what your normal payment is.

    This has the added benefit that if cash is a little short one month, you don’t have to include that extra payment amount.

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