Comments on: Please don’t pay for bi-weekly mortgage acceleration http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/ Personal finance, commentary, and spending less the easy way Sat, 07 Nov 2009 00:26:19 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: mark j orr, CFP http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-184709 mark j orr, CFP Thu, 16 Jul 2009 01:10:01 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-184709 When properly set up, bi-weekly mortgages can be a decent deal is someone is just scraping by and only able to make the mortgage payment. However, for millions of Americans there is a much more powerful mortgage acceleration method. Unfortunately, the big guys charge up to $3500 and the is NO REASON to pay anything like that to learn exactly how it works and to get software to help implement the strategy. SO PLEASE keep telling people to NOT spend their hard-earned money on high-commission products that are NOT needed. When properly set up, bi-weekly mortgages can be a decent deal is someone is just scraping by and only able to make the mortgage payment.

However, for millions of Americans there is a much more powerful mortgage acceleration method. Unfortunately, the big guys charge up to $3500 and the is NO REASON to pay anything like that to learn exactly how it works and to get software to help implement the strategy.

SO PLEASE keep telling people to NOT spend their hard-earned money on high-commission products that are NOT needed.

]]> By: john http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-164584 john Tue, 09 Dec 2008 21:52:29 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-164584 I have to agree with all points here. The one thing not mentioned is that most Americans are not disciplined enough to hold on to there own money. I too used to work for a mortgage company, and if everyone was responsible enough, no one would set up an escrow account either. Why give the bank money to pay taxes and insurance every month. They just hold it and earn interest. As for the fees, there is always a cost to do business. These companies are providing a service for a fee. When you originate a mortgage, the lender usually gives you a better rate if you set up an escrow account. Most Americans need someone to manage their money. Money in pocket is spent!! I have to agree with all points here. The one thing not mentioned is that most Americans are not disciplined enough to hold on to there own money. I too used to work for a mortgage company, and if everyone was responsible enough, no one would set up an escrow account either. Why give the bank money to pay taxes and insurance every month. They just hold it and earn interest. As for the fees, there is always a cost to do business. These companies are providing a service for a fee. When you originate a mortgage, the lender usually gives you a better rate if you set up an escrow account. Most Americans need someone to manage their money. Money in pocket is spent!!

]]> By: georgia http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-162901 georgia Thu, 27 Nov 2008 13:47:15 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-162901 Mortgage accelerator plans are attached to my US bank mortgage.When I asked to remove the "junk mail" from my mortgage statement, the bank said no. Today I read in the st. cloud times -101 Ways to save, No.15= pay bi-weekly instead of monthly! Besides fees attached to accelerator plans, there must be a kick back for the advertisers of this bogus idea. Hopefully before homeowners sign anything, they read your article. Mortgage accelerator plans are attached to my
US bank mortgage.When I asked to remove
the “junk mail” from my mortgage statement,
the bank said no. Today I read
in the st. cloud times -101 Ways to save, No.15= pay
bi-weekly instead of monthly! Besides fees attached to accelerator plans, there must be a kick back for the advertisers of this bogus idea. Hopefully before
homeowners sign anything, they read your article.

]]> By: Brad http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-162345 Brad Sat, 22 Nov 2008 15:48:57 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-162345 I never understood why people wanted a bi-weekly mortgage. I use to work for a mortgage company and I would tell people to put it in their savings account for the whole month and let their money work for them. Then take the money they earned interest on and add it on top of their normal mortgage payment. This way they could still be knocking down more of the principal. I never understood why people wanted a bi-weekly mortgage. I use to work for a mortgage company and I would tell people to put it in their savings account for the whole month and let their money work for them. Then take the money they earned interest on and add it on top of their normal mortgage payment. This way they could still be knocking down more of the principal.

]]> By: Best CD Rates http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-152863 Best CD Rates Wed, 17 Sep 2008 20:41:59 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-152863 The fees are ridiculous! Most people can not afford to send in an entire extra payment at once but you can add some money ( divide 1 month's mortgage into twelve months) to your monthly payment to pay down the principal every month. The fees are ridiculous! Most people can not afford to send in an entire extra payment at once but you can add some money ( divide 1 month’s mortgage into twelve months) to your monthly payment to pay down the principal every month.

]]> By: Becky@FamilyandFinances http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-136887 Becky@FamilyandFinances Thu, 24 Apr 2008 14:30:02 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-136887 I agree that these stink! I signed up for it when it first became popular a couple of years ago. I thought that they'd apply the first half of the payment right away so I'd be saving on interest. Instead, they just held both halves until the end of the month and then made the payment. How does that save me money???? I immediately canceled. I agree that these stink! I signed up for it when it first became popular a couple of years ago. I thought that they’d apply the first half of the payment right away so I’d be saving on interest. Instead, they just held both halves until the end of the month and then made the payment. How does that save me money???? I immediately canceled.

]]> By: Lee http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-136791 Lee Wed, 23 Apr 2008 18:58:05 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-136791 Primerica Financial Services through Citicorp Trust Bank does not charge a fee for bi-weekly mortgage payments. In fact, they give the family a interest rate reduction for signing up for it! Primerica Financial Services through Citicorp Trust Bank does not charge a fee for bi-weekly mortgage payments. In fact, they give the family a interest rate reduction for signing up for it!

]]> By: JimmyDaGeek http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-136785 JimmyDaGeek Wed, 23 Apr 2008 18:11:24 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-136785 Most people don't know that post-tax contributions made to a Roth IRA can be withdrawn without penalty. See http://www.irs.gov/publications/p590/ch02.html#d0e10747. This is one way of investing your excess cash and still having access to it, instead of paying off the mortgage. Most people don’t know that post-tax contributions made to a Roth IRA can be withdrawn without penalty. See http://www.irs.gov/publications/p590/ch02.html#d0e10747. This is one way of investing your excess cash and still having access to it, instead of paying off the mortgage.

]]> By: Elizabeth http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-136782 Elizabeth Wed, 23 Apr 2008 17:32:52 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-136782 I was unaware that there were companies trying to charge a fee for what any homeowner can already easily do themselves. I guess I shouldn't be surprised. My husband and I regularly apply points 1 and 2. We make one extra mortgage payment every year and have it applied to our principal. We're only 5 years into a 30-year mortgage. I love seeing that principal amount take a $1600 hit all at once. occassionally my husband will make a mortgage payment in advance when we have extra monthly income -- just as insurance against a month where our expenses are higher than expected or extra income lower. I was unaware that there were companies trying to charge a fee for what any homeowner can already easily do themselves. I guess I shouldn’t be surprised.

My husband and I regularly apply points 1 and 2. We make one extra mortgage payment every year and have it applied to our principal. We’re only 5 years into a 30-year mortgage. I love seeing that principal amount take a $1600 hit all at once.

occassionally my husband will make a mortgage payment in advance when we have extra monthly income — just as insurance against a month where our expenses are higher than expected or extra income lower.

]]> By: Mydailydollars http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/comment-page-1/#comment-136778 Mydailydollars Wed, 23 Apr 2008 17:17:26 +0000 http://www.mightybargainhunter.com/2008/04/23/please-dont-pay-for-bi-weekly-mortgage-acceleration/#comment-136778 Good advice! It's nice to know that you can get the same results without the extra fees. Good advice! It’s nice to know that you can get the same results without the extra fees.

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