Is there an official definition of biweekly mortgage payments versus semimonthly and monthly?
We just refinanced our home with our credit union and specifically asked for biweekly payments to pay off faster. They said it would be just a slighty higher interest rate. Biweekly is on our closing papers. Our first payment was made but our loan balance did not go down and our loan officer is claiming it is not really biweekly and they hold the payment and it reduces once a month. I think she’s full of shit, that is not what we signed up for and we made clear what we wanted before we applied for the loan and she agreed it could be done. There is no benefit for a slightly higher interest rate this way. She also messed up the first loan payment because it was supposed to be automically taken from our account. I think we have a dumb loan officer as we have never used her before.
I have had 3 car loans with this CU and never had these problems. Those were all biweekly and worked correctly with the loan balance lowering every 2 weeks so I know they know how to do this as biweekly
Which style of Mortgage Payments is better for a Homeowner,
2)Lumpsome an Extra Payment once every Year
in 1) disadvantage is there is an extra 300$ for enrollment fees to be paid.
in 2) advantage is that you can pay as & when you have extra cash to pay.
Also, if you pay Extra payments than 2), to shorten your loan-length, is there any hidden disadvantage?
Ken, How can it be less empacting?
Again Clarifying part 1 of my question :
if I make one extra payment every year, at start of the year (towards Principal, of course)
How is this scene different from enrolling in Biweekly? (other than losing 300$ extra in enrollment fee)