Question

From your experiences, is there a benefit to paying your mortgage twice a month? Our monthly payment is $1800. I usually pay it once a month but can do $900 2x/month if that’ll help decrease interest or something. Do any of you do this too?  

Answer 1

So my mortgage lender will not allow partial payments. They said they will put any partial payments in a separate account until the full amount is received and then apply.  

Comments

@driblet mine does the same so I had to pay a month ahead when I started. So January 1 made a full mortgage payment. January 14 make 1/2 a mortgage payment. January 28 make 1/2 a mortgage payment. Then your paid for February and you can start your every 2 weeks. While they wont apply it until its paid in full, its 26 payments or 13 months of payments at the end of the year.  

Answer 2

We do it with cars, pays off the loan a couple months early

Answer 3

The earlier in the billing cycle you pay the less interest you are charged overall. So if your bank accepts early partial payments you can save money. I would ask your bank.  

Answer 4

Bi weekly payments make a difference.  

Answer 5

It depends on the interest method of your loan. If you contact your loan servicer, they should be able to tell you if & what difference it would make.  

Answer 6

Double check with your lender. I used to do it with US Bank and they stopped allowing split payments without notice and I had to call and request a late fee be taken off.  

Answer 7

I make weekly payments. So for example if you owed $1000 a month I would pay $250/week. It helps pay off the loan quicker because of how the interest accrues. Talk with your lender to see if they allow it.  

Answer 8

Well for just loans (depending on your interest terms) it would make a huge difference. Even making just 1 extra payment a year makes a big dent.  

Answer 9

Yes I gained many months ahead of payoff time doing this.  

Answer 10

Just a heads up it does pay it off faster if you do it ever two weeks by a lot. But you have to set it up that way with your lender. They won’t take a partial payment if you just send it that way.  

Answer 11

It helps yes if your company will let you do that. I do it with my student loans. i have really seen a difference. I actually see light at the end of the tunnel.  

Answer 12

We do bi-weekly payments and have for all our mortgages. just make sure you're a month ahead and you will never have an issue with being late. It helps cut down interest as well as a full payment and half goes directly to principle.  

Answer 13

Yes, it lowers your interest and you especially make a full extra payment a year. Instead of 12 payments (1 per month), you make a half payment every 2 weeks which means 26 half payments = 13 full payments in one calendar year.