You’ve probably already heard the claims. That a bi-weekly mortgage can save you thousands of dollars. And that a bi-weekly mortgage can shave years off the life of your loan and help you accrue equity in your home fast.
Well, it’s true! Pardon the exclamation point. Anyways, “bi-weekly mortgage payments” are a sort of accelerated mortgage payoff system that allow you to make an extra monthly payment each year. The way it works is rather simple.
Instead of making one single monthly mortgage payment, or 12 mortgage payments a year, you make a mortgage payment every two weeks. And because there are 52 weeks in a year, that equates to 26 half mortgage payments a year, or 13 total monthly mortgage payments.
The result is an additional mortgage payment each year, but of course it’s not that simple. Nothing ever is. You can’t simply expectyour bank or mortgage company to allow you to mail in a half payment twice a month, that simply won’t fly.
Your lender will ask you to set-up a biweekly payment system with an intermediary, which acts as a liaison between you and your lender. That is where we come in we act as the intermediary for you. We Do The Work, You Receive The Benefits!
So what are the benefits of a biweekly mortgage anyways?
Our Bi-weekly servicing division provides third-party handling of financial obligations on behalf of the client utilizing the Bi-weekly Accelerated Loan Servicing program. This allows for 26 debits per year, making for an additional payment per year, which benefits the client by reducing principal balance, saving money on interest assessed and reducing the life of the loan.
Our system handles your account with the latest computer technology and a staff of experts in funds transfer and accounting. This service is ideal for mortgage loans, car loans, personal loans or student loans -- any obligation involving a periodic payment.