+34 votes
by (1.5k points)
Split mortgage payments - I don’t know why but I got really confused as I started to make my payments up. Ok, so we have a payment due 3/1. We will pay that in full. Then for our 4/1 payment we want to start doing split payments bi-weekly. So do we make a payment on 3/15 for half and then 4/1 for the other half? Is the first payment to principal only and then the 4/1 payment to interest and principal? And does my 4/1 payment automatically adjust to the lower payment? Has anyone had the second half payment not adjust so then you end up owing 1. 5 payments instead? Clearly I’m overthinking this but I just thought of it all as I was about to pay it.  
Split mortgage payments - I don’t know why but I got really confused as I started to make my payme

23 Answers

+18 votes
by (2.4k points)
The only way to put extra towards principal that I know if you call in and specifically state that’s what the extra payment is for. So if you’re just making your regular payment but divided in two, you’re not doing anything extra as far as I understand.  
+22 votes
by (4.2k points)
I am paid bi-weekly. I put half of my mortgage aside with my first paycheck of the month. Then I take the second half from my second paycheck of the month, put the two half’s together and make the payment to my mortgage company for the next upcoming month. That way I don’t have to come up with all the money for my mortgage payment from one paycheck. Plus it’s always paid before the due date.  
by (1.6k points)
@schrock ditto! Coming out of 2 checks vs 1 makes a world of difference!  
by (1.5k points)
I’m talking about making split payments though, not holding half in my account. Split payments help you save a ton and pay off quicker.  
by (230 points)
@smoulder it is going to depend on your mortgage company. Many of them don’t allow split payments or may require you to be a month ahead before they allow it. If your company doesn’t allow it and you do it like @schrock stated you will ultimately have that extra payment to apply to the mortgage by the end of the year. I do it like this as well because my company doesn’t allow split payments.  
by (1.4k points)
@schrock My husband and I get paid opposite weeks so we do this weekly! It has made a huge difference as it seems all of our bills are due in the first two weeks
by (4.2k points)
@offoffbroadway that’s awesome!  
by (4.2k points)
@cunnilingus it made such an impact on me!  
by (1.4k points)
@smoulder I believe the split payments only help you pay off quicker when you have those 3 payment months. which are twice a year? I did this for a while on our old mortgage but then I would find myself wanting the extra money for other things . But yes. If you pay bi weekly you will technically make 1 or 2 extra house payments a year so you will pay less interest
0 votes
by (2.3k points)
Following because I'm literally in the same boat. I was thinking I would do it as others have stated, hold half until I have both and then make the payment. But now I'm wondering about maybe doing the true split payment plan. I would think it would just simply be like making a partial payment and no need to distinguish where it is going. I. e. your mortgage is say $700. Payment 1 $350 (before due date) makes your amount due on due date $350 right?  
+18 votes
by (570 points)
Call your mortgage company. some don’t allow payments Like that. Mine doesn’t.  
by (1.5k points)
@patton3378 I did call them, they allow it
+6 votes
by (1.6k points)
Paying in the 15th and the 1st isn’t going to give you an extra payment a year. That is just splitting your current payment in two. If you want to add an extra payment a year you need to be paying every 2 weeks. Or at least saving every two weeks. If you put aside the money biweekly by the end of the year you will have an extra payment available to send in.  
+3 votes
by (810 points)
We always do split payments. We love it. Our mortgage payment isn't paid in one lump sum, and it knocks off a considerable amount of years off of your mortgage loan. Some months, you will have to pay 3 mortgage payments, so that is the kicker.  
+2 votes
by (1.2k points)
My mortgage companies don’t take partial payments. They hold the first payment until they receive the whole amount. You should check with your bank to see what their policies are. When I send in an “extra” payment I have to specifically designate if for the principal.  
+25 votes
by (8.3k points)
You need to inquire with your mortgage company. Each company has different rules and allows different things. They will be able to tell you what they accept and then what/how to do it.  
+19 votes
by (3k points)
The bank I work for will not allow you to make split payments, meaning they won’t apply the funds until you have made the payment in full. They will hold the first half payment in an unapplied account until you make the payment in full. So check with your mortgage company on this.  
by (1.3k points)
@equitationwells fargo also does not take partial payments, however they will set up your account to have money withdrawn every two weeks instead of monthly.  
by (3k points)
@outlet I have a student loan through earnest and they have this also where they will withdraw automatically biweekly.  
by (10.6k points)
@equitation ours does the same thing
+22 votes
by (3.5k points)
Call your mortgage company and ask them. Everyone’s different. But I’m pretty sure interest is paid first then principle.  
+1 vote
by (1.3k points)
Call your lender. They will set up auto payments every two weeks. They will tell you exactly when it starts and every two weeks they will take a payment after that. Also remember the reason this works is because you are actually paying more for months that have 5 weeks instead of 4.  
+10 votes
by (13.9k points)
Your first partial payment would not go straight to principal. The only way to pay down your principal is to pay more than the amount due. Many mortgages will hang on to the partial payment until the remainder of the minimum payment is paid before processing the payment. In order to pay down principal early with the method your planning is to pay a half payment every two weeks, not twice a month. So if you pay half on 3/15, you need to do another half on 3/29, then 4/12, 4/26, etc. That way by the end of the year you’ve paid one full extra payment.  
+8 votes
by (6.2k points)
Talk to the company who has your mortgage as they’re all different. Our company won’t even allow you to make a payment unless it’s for the full amount. (Or a second payment after the full amount is paid)
+25 votes
by (2.8k points)
Our mortgage company wanted a fee to be placed on that program. I think it was upwards of $400. You could accomplish the same thing by making an extra payment every year. If the mortgage company is holding the first payment to put with the second payment, it's not going to help with the interest. (Not sure if that made sense. )
+25 votes
by (7.5k points)
We’re splitting ours and the first payment goes to interest and the rest goes to principle. Usually they’ll always cover interest first. You’ll also knock extra off your loan, seeing as there are some months that have an extra week.  
+21 votes
by (3.4k points)
I used to pull out the payments every other week and put in a slinking fund at the end of the year the extra payments would be in the sinking fund and I would cut a payment directed straight to principle for the year. Much easier.  
+17 votes
by (12k points)
Call your mortgage lender or look up online. It’s super easy but you must set it up with them, you can’t just start making half payments. But make sure to sign up for biweekly and not twice a month. Biweekly will take a few years off. When I set it up I paid my mortgage in full and then chose the day I wanted to start making biweekly payments. (So that first month you’re paying extra). I chose Tuesday so every other Tuesday I pay half my mortgage. Your payments end up being applied the same way as normal.  
+20 votes
by (4.7k points)
My understanding is that it’s bi-weekly payments that help you pay down your mortgage faster not just splitting the payment and paying half twice a month. The reason bi-weekly works is because there are 26 weeks in a year not 24. When you pay every other week you are in effect making 13 payments with the last one being all principal. I believe you have to set this up with the bank, you can’t choose to do it on your own. If you want to do it on your own, you can set aside 1/2 mortgage every other week, pay your mortgage as usual and then make the extra principal payment yourself when you have extra built up.  
+4 votes
by (1k points)
Can’t stress enough. CALL YOUR MORTGAGE COMPANY. There are so many different types of loans, interest methods, payment application hierarchy methods, investor policies, loan servicer processes. There are literally 100s of different situations. Bi weekly (26 payments) is not always available/allowed or applied to the loan like you think or want it to be. Semi monthly (24 payments) is even less prevalent than bi weekly payments. And I would call more than once as you may get multiple different answers depending on the terminology that you use during the call. Good luck.  
by (1.5k points)
@munition I did call. Before I posted. I was asking these after because the logistics were confusing me
by (1k points)
@smoulder you can PM me.  
by (14.1k points)
@munition exactly! Our mortgage company will hold partial payments until a full payment is available and apply it all at once
+7 votes
by (1.7k points)
Our mortgage company won’t allow us to do split payments so what I did was get us a month a head on payments and we have a checking account just for the mortgage so I have money transferred there every week (we get paid weekly). Then I pay when we have the full amount. It’s worked for us so far.  
by (1.5k points)
@porcine I love this idea
by (1.7k points)
@smoulder Yeah it’s really helped us not stress over paying the mortgage with one check. Makes it more manageable.  
+10 votes
by (10.1k points)
You have to see if this is allowed with your loan
+30 votes
by (2.9k points)
I pay half with each paycheck, just so I can get it out of my bank account. I make sure that each payment falls before My due date. My mortgage company does nothing with my first payment but hold it on my account, and then when my second payment, full balance, hits they allocate it all. This has been what has worked best for me the past year, even though I do not benefit financially.  
+12 votes
by (740 points)
We have Chase and I'm also looking into something similar.  
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