How do I start a biweekly mortgage reduction plan?
Bi-weekly mortgage payment plans are one of the many ways to accelerate your mortgage.
You can either sign up for them before your loan is closed, or after. If you want to do it right from the start, you need to talk to your mortgage broker and ask them to find you a loan program with a bi-weekly payment plan.
You can also call your mortgage servicer (where you send your payments) and request to be switched to a bi-weekly billing program.
There are smarter ways to accelerate your mortgage payoff, however. First of all, you can usually set up your own bi-weekly payment program without signing up for anything. Depending on how your servicer applies your payments to your loan, you may be able to simply send in half of your payment amount every two weeks.
Furthermore, you can simply calculate how much you will pay in mortgage payments over the course of the year, divide that by 12, and then just pay that amount monthly. you will accomplish the same benefit that way as long as the lender is applying the overage to principal and not to future payments.
There are even faster ways to pay off your home.
Mortgage Acceleration (MA) is gaining popularity and understanding. MA obliterates bi-weekly payments in terms of speed and effectiveness.
There are numerous companies out there selling MA plans right now. Be Careful! Mortgage acceleration is not a concept you need to pay an arm and a leg for! Some companies charge as much as $4000 if you sign up for their mortgage acceleration program. It may be worth every penny because of all the money you'll save, but other companies charge less. The fact is that the principal of Mortgage Acceleration is the same no matter what program you go with.