Does it save me money to pay our mortgage payment every 2 weeks?
happydawg Asked: Does it save me money to pay our mortgage payment every 2 weeks?
We bought a house in October, and I decided it would be easier on me to have the mortgage payments taken directly out of my checking account every other Friday.I think 2 or 3 months out of the year it ends up being 3 payments a month.
Our mortgage is a fixed 4.25 over 30 yrs.I paid $100 to do the paperwork to have the automatic deduction taken out of my personal checking account.
The every other Friday payment is $538. 17.This includes property tax which is going to dramatically go up this year since we bought the house off a deceased elderly gentleman who had all kinds of exemptions.We will only have owner occupied exemption.
The mortgage lender told me paying the monthly payment in 2 or 3 installmentswould cut about $25,000.00 off the amount of the loan.
Did I screw this up, or is it better to pay every 2 weeks?Im always very nervous about crooks.
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