https://boards.hellobee.com/ Pregnancy, Baby and Parenting blog, by Hellobee en Mon, 20 Jul 2026 01:28:55 +0000 https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-704748 Wed, 10 Apr 2013 09:57:51 +0000 sunny 704748@https://boards.hellobee.com/ <p>I love this mortgage calculator for modelling how extra payments changes your amortization schedule. </p> <p><a href="http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx" rel="nofollow">http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx</a> </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-704274 Wed, 10 Apr 2013 07:43:13 +0000 mlm2934 704274@https://boards.hellobee.com/ <p>@looch: @hergreenapples: haha, I feel like a dummy -<br /> I knew I must be interpreting that interest rate incorrectly haha</p> <p>I guess it's always been hammered into my head that variable is too risky - or I'm too risk adverse to even take advantage in even a low interest rate market. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-704266 Wed, 10 Apr 2013 07:40:53 +0000 heartonastring 704266@https://boards.hellobee.com/ <p>@looch: @runnerd: Right. So our bank's prime lending rate is 3.0% at the moment, which means our mortgage rate is 3.0 - 0.95 = 2.05%. Given that interest rates were and remained so low throughout the term of our mortgage (most Canadian mortgages run on five year terms. So we renegotiate later this year, which, I believe, is different from the Americn system) it would have been a bad idea, comparatively, for us to look into a fixed rate, especially when it was pretty clear there wasn't going to be a significant increase in interest rates in the foreseeable future.</p> <p>We were lucky in that we got our rate in the summer of 2008 before the crash. You don't see prime minus rates anymore, even in Canada whose real estate market was relatively unscathed by the recession thanks to our much stricter lending laws and regulations. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-704257 Wed, 10 Apr 2013 07:29:37 +0000 looch 704257@https://boards.hellobee.com/ <p>@runnerd: I don't think that's a negative rate, it's prime minus a spread...which is still a positive figure. Current WSJ Prime rate is 3.25, it was the same one year ago. So I think the all in rate is something like 2.3%.</p> <p>The variable rate loans are always a risk in a rising interest rate environment. People got hammered when they had things like 5/1 arms and they thought they'd easily be able to sell their house but instead rates went up and the market dried up. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-703549 Tue, 09 Apr 2013 18:29:54 +0000 heartonastring 703549@https://boards.hellobee.com/ <p>@runnerd: I'm in Canada so it may be different, but here the studies show that with variable rate mortgages you come out ahead about 85% of the time. We certainly have. You can lock in at any time. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-703420 Tue, 09 Apr 2013 17:13:01 +0000 PurplePumps 703420@https://boards.hellobee.com/ <p>@runnerd: Ah, yes, that makes sense to do only if you can apply it directly to principal. When I talked to my bank, that was not an option for us... they would only apply it as a regular bi weekly payment toward the principle AND interest so we just left it as monthly and did monthly extra principle payment. Doesn't matter either way now since we stopped paying extra. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-703216 Tue, 09 Apr 2013 15:53:29 +0000 mlm2934 703216@https://boards.hellobee.com/ <p>@PurplePumps: the way ours works is twice a year there are 3 bi weekly payments in one month, so those two months, the third draft goes directly to principal. You have to specify that you want it applied that way when you sign up for bi-weekly though </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-703209 Tue, 09 Apr 2013 15:51:32 +0000 mlm2934 703209@https://boards.hellobee.com/ <p>@hergreenapples: you have a negative rate?? I'd be too scared to get a variable loan! </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-703201 Tue, 09 Apr 2013 15:50:07 +0000 mlm2934 703201@https://boards.hellobee.com/ <p>we do, I hate monthly, plus bi-weekly gives you the built in extra principal payment. Before my husband's pay schedule changed we actually did weekly which I loved because it made managing expenses so much easier with even distribution of our biggest expense.</p> <p>We also pay extra $80 principal per bi-weeklu payment </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-701628 Tue, 09 Apr 2013 09:21:49 +0000 avivoca 701628@https://boards.hellobee.com/ <p>@Bao: Last year, we added an extra $100 dollars to our mortgage payment for a couple of reasons: 1) we qualified for a buy-down credit for the first year, and the extra $100 would make the payment closer to what our payment is now, and 2) that extra money each month added up to 1.5 extra payments in the year. I plan on continuing that this year, especially now that the credit cards are paid off. It really does make a difference; in our first year owning, we've paid off $2500 on the principle, and if we continue to do it, we can save even more and pay off the house sooner. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-701603 Tue, 09 Apr 2013 09:16:33 +0000 heartonastring 701603@https://boards.hellobee.com/ <p>We do biweekly payments, which shortened our amortization somewhat. Then, after a couple years in our house, we upped our monthly payments by an additional 50%, which dropped our amortization down to like, 12 years and I think we're down to 8-ish now (started out with a 30 year mortgage 4.5 years ago). We've been <i>really</i> lucky with our rate though (we have a variable at prime -0.95%) so we've been able to pay off a ton of principal. But we're dreading renegotiating later this year, because we know we won't get anything even close to that! </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-701591 Tue, 09 Apr 2013 09:14:53 +0000 regberadaisy 701591@https://boards.hellobee.com/ <p>@Mrs. Champagne: do you basically take what a monthly payment would be and split it in half? So in theory there's less $ left to accrue interest in? </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-701579 Tue, 09 Apr 2013 09:10:43 +0000 Alivoo01 701579@https://boards.hellobee.com/ <p>We do bi-monthly for our house where they divide up our total monthly payment in two and it's applied towards principal and interest each time. </p> <p>For our farm, I do bi-monthly where 1 payment is the regular mortgage payment (principal and interest), and the other payment is strictly for principal. I like this way better. It pays down the actual loan amount faster which significantly reduces the amount of interest you will have to pay. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-701447 Tue, 09 Apr 2013 08:36:56 +0000 Beebug 701447@https://boards.hellobee.com/ <p>@Freckles: I know! I was shocked it was that low too!! We are doing pretty well with our current variable (2.5%) but why not lock in at 2.8% for 5 yrs going into a new place. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700795 Mon, 08 Apr 2013 21:29:51 +0000 PurplePumps 700795@https://boards.hellobee.com/ <p>We just pay it once a month. If you want to do an extra payment, you should schedule it as a extra payment toward principle only. I believe that if you do bi weekly payments, they go in as a regular payment toward principle and interest. You are better off saving that extra 2 payments and making a principle payment once a year. We were doing extra payments monthly, but did some thinking and research on benefits of paying down the mortgage early vs inflation and decided it wasn't worth doing. This article explains it best. <a href="http://www.heracliteanriver.com/?p=478" rel="nofollow">http://www.heracliteanriver.com/?p=478</a> </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700786 Mon, 08 Apr 2013 21:28:24 +0000 Freckles 700786@https://boards.hellobee.com/ <p>@Bao: It's not necessarily the same. With bi-weekly, there are some months where you will make 3 payments. I believe you end up making one extra month of payments in a year. With bi-weekly, the payments come off automatically, so you don't have to save up to make the payment at the end of the year. We do bi-weekly and also pay an extra $x per payment. It's just easier this way.</p> <p>@Beebug: @Mrs. Champagne: 2.8% fixed? Really?? We had about 2.65% (i can't remember) when we had a variable rate a few years ago, but decided last year to lock into 2.99 fixed for 5 years when all the banks were offering it. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700681 Mon, 08 Apr 2013 20:51:28 +0000 cheert16 700681@https://boards.hellobee.com/ <p>We do... Actually we do weekly payments that come directly out of my husband paycheck- totally worth it- we never have to write a check and we are actually paying down our mortgage faster! </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700679 Mon, 08 Apr 2013 20:51:03 +0000 Pirouette 700679@https://boards.hellobee.com/ <p>+1 to what laughlines said - you should never be charged for making extra payments on your mortgage. Just set up auto pay for 2x/month or manually make an extra payment, but the service is a rip off. Other than that it's an excellent idea!</p> <p>We don't do it because we don't plan on staying there much longer, so there's no benefit to paying down the mortgage at the moment. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700675 Mon, 08 Apr 2013 20:49:07 +0000 LaughLines 700675@https://boards.hellobee.com/ <p>Yes, you can pay extra whenever you want and get the same effect (if you're consistent), or even extra payments here and there or once a year or whenever you can. Just make sure you're not signing up for anything you have to pay for! Call your bank and ask about making additional principal payments, they'll tell you how. Don't go through a third party</p> <p>also, may want to consider using "extra" money for something other than your mortgage if your interest rate is low. Maybe a 529 or Roth IRA where your return could be greater than the interest you would save on your mortgage. (ex: if your mortgage is 3% but your return on an IRA is 8% plus tax benefits of contributing, the IRA wins) </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700672 Mon, 08 Apr 2013 20:48:47 +0000 Bao 700672@https://boards.hellobee.com/ <p>@MrsH: It would slightly, yes...but I'm just trying to figure out if we would want to split it up or keep it all one larger payment. Obviously breaking it up seems like the better option, but sometimes with the way our budget is played out it doesn't always work out the way we imagine...if that makes sense. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700666 Mon, 08 Apr 2013 20:46:42 +0000 MrsH 700666@https://boards.hellobee.com/ <p>@Bao: if you make extra payments you'd pay less interest overtime and pay it off faster. Does the bi-weekly lower the interest you pay any? </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700665 Mon, 08 Apr 2013 20:46:20 +0000 Bao 700665@https://boards.hellobee.com/ <p>@Mrs. Champagne: Good to know, thank you! </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700663 Mon, 08 Apr 2013 20:45:36 +0000 Bao 700663@https://boards.hellobee.com/ <p>@yoursilverlining: Yeah our realtor told us if we just made even 1 extra payment a year it would make a difference. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700657 Mon, 08 Apr 2013 20:43:59 +0000 Mrs. Champagne 700657@https://boards.hellobee.com/ <p>@Bao: yep! (I'm in Canada but I'd imagine you have a similar option?)</p> <p>Most mortgages here have a 20/20 option, meaning that you could increase your payment by 20% at any time, and also put down up to 20% of the balance each year. So if your house was $200,000 you could make payments up to $40,000 throughout the year. Just check with your lender to see the terms :) </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700647 Mon, 08 Apr 2013 20:39:17 +0000 yoursilverlining 700647@https://boards.hellobee.com/ <p>You can always pay extra on your mortgage. When you send in your payment (online or via mail) just make sure you specify that your overpayment goes to principal.</p> <p>We don't do bi-weekly, but we make an extra payment at the end of the year towards principal. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700641 Mon, 08 Apr 2013 20:36:45 +0000 Bao 700641@https://boards.hellobee.com/ <p>Could you just put extra on your payment, or make extra payments so it would have the same outcome, or no? Just trying to do my research! </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700636 Mon, 08 Apr 2013 20:35:30 +0000 Mrs. Champagne 700636@https://boards.hellobee.com/ <p>@Beebug: That's a great rate! I've seen 2.79% so pretty much the same thing! :) Lock in as soon as you can! :) </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700468 Mon, 08 Apr 2013 19:37:07 +0000 BSB 700468@https://boards.hellobee.com/ <p>Hmm, that's a cool option. Need to check that out when we start the home buying process. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700462 Mon, 08 Apr 2013 19:35:22 +0000 LaughLines 700462@https://boards.hellobee.com/ <p>Be very careful with the fliers sent to your house, they charge you for the service. If you want to do bi-weekly payments, do it on your own by writing a check to the bank, not signing up with their program. </p> <p>It does save interest over the long run, but if you're paying the service to do it you don't get all the savings. It's always free to make extra payments on your own at any schedule that works for you</p> <p>--now that you have a mortgage you will get a lot of info like that in the mail. The mortgage is public record and companies who are interested in homeowners can get your address for free. This also includes insurance companies/coupons/etc. Take it all with a grain of salt. </p> https://boards.hellobee.com/topic/anyone-do-bi-weekly-payments-for-your-mortgage#post-700456 Mon, 08 Apr 2013 19:31:02 +0000 Smurfette 700456@https://boards.hellobee.com/ <p>We do with our condo. It works out so you make an extra payment a year. I like it much better cause it isn't one huge sum once a month. </p> <p>I still have to sign up for it for the house. </p>