Cut Years Off Your Mortgage

If you are in good standing on your Mortgage payments, many banks will put you on Bi-Saver payments which means that you pay one half of your monthly mortgage payment every two weeks. By doing this, you will actually make 26 half payments (13 mortgage payments) in a year. The 13th and 26th one half payments go completely to the principal. You can save many thousands in interest and several years.

You must make all payments on time (we used direct debit from our checking account every other Wednesday. If you don't, they put you back on regular monthly payments. We recently paid off our mortgage which was originally due to paid in 2018 and we saved many thousands in interest. There was a $300 charge to set up the payment schedule contract.

If you can't get the Bi-Saver (or a similar plan), you can still send extra with your monthly payment (in most cases a minimum of $25) and designate it for "principal only". We had begun doing this until we learned of the Bi-Saver. I always wrote a second check for the $25 and wrote "apply only to principal" in the memo line along with our loan number. Depending on the amount, you can save a good amount this way too, yet are not bound to a contract.

By Mary from Gold Hill, NC

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Shared on: 08/12/2011