“Discover How To Easily Implement Your
Own Biweekly Mortgage Plan”

And Not Pay A Dime For It

I’m sure you’ve found plenty of companies willing to sell their biweekly
mortgage plans to you. 

They’re everywhere…especially online.
 

Prices range anywhere from $99 to $399 (enrollment fee).

Some companies are even advertising Free biweekly mortgage programs. Sounds like a good deal right? Not quite.

These “Free” biweekly mortgage programs always end up being more expensive.  If you read the fine print, you’ll notice these “Free” plans charge a transaction fee.

The fees are usually $3.50 per transaction, two times per month..  At twice a month that equals $7.00. Which means you’ll pay $84 every year or $1,800 over the life of your loan.

…Not so Free after all.

Implementing a biweekly mortgage plan is very easy to do.  Don’t let anyone tell you it’s worth paying a service to do it for you.

This report will take you step-by-step and show you how easy it is to implement your own biweekly plan without using an expensive service. Allowing you to be in complete control of your mortgage investment.

The following bullet points show the valuable benefits
a bi-weekly plan will bring you.

·         Eliminates overpaying mortgage interest.

·         Cut up to 8 years from the average mortgage term

·         Double the equity in your home

·         Put thousands of dollars of mortgage interest back in your                                           

So many people are surprised when they make a call to their lender after paying for a few years and find out how much they still owe. I think most people believe they have a lot more equity built up in their loans than they really do.

So keep this in mind as a goal to overcome as you read on. Don’t get discouraged. You may want to read this over a couple of times to fully understand how it works.

Feel free to play with the biweekly mortgage calculator Click Here

Bi-weekly Mortgages Explained

Making bi-weekly payments on your loan is one way of achieving faster equity build up, reducing interest payments and reducing your term. If you’re unfamiliar with biweekly mortgage payments, let me explain. It’s actually quite simple.

 First off, bi-weekly means every two weeks. However, don’t think you’re going to make a full monthly payment every two weeks. You actually pay half of your monthly payment every two weeks. In doing so you create one extra, full monthly payment per year.

Let me explain how this is possible.

You’ll need to get a calendar at this point, it will help understand. Take your calendar and make a mark on every other Friday for one full year. Count the marks. You should have 26 total. These marks would essentially be your payment dates.

As you can see there are two months out of the year that have three payment dates instead of just two.

If you pay half of your monthly payment every two weeks, that means you are making 26 half payments per year. So 26 half payments are equal to 13 full payments.

Normally you would only make 12 full payments per year. That is how the “magical” 13th payment is created. The secret is in those two months where there is an extra Friday. So really, you hardly feel that you are coming up with an extra payment because it’s spread out over the course of a year.

Here is a scenario to help you further understand:

let’s say you borrowed $100,000 at 7% interest for 30 years. Your monthly payment would be $665.00 (without taxes and insurance.) So you decide after taking out this loan that you would really like to pay this loan off early and build extra equity in your home.

All you do is take your monthly payment of $665.00 and cut it in half, which would be $332.50. If you pay $332.50 every other Friday you will have one extra payment of $665.00 at the end of the year.

You would then forward this payment to your lender with a letter designating this money to be applied entirely towards principal.

This small amount of work would yield a savings of $34,700.00 and allow you to pay this 30-year loan off in 23 years. Or, you could have cashed in on the equity at 18 years and had about $25,000.00 for your child’s college fund.

Implementing a Bi-weekly Payment Plan

The first thing you’ll want to do is take a look at your most recent loan statement. This will provide you with the most up-to-date information about your loan.

Next, you will want to call your lender and ask for the cash management department. If they do not have such a department, then ask for someone that can help with payment inquiries.

Once you are speaking to the proper person, inform them that you wish to start making bi-weekly payments on your loan. Ask that person what options are available to you that would enable you to set up a bi-weekly payment plan.

Let them know that you are trying to implement your own bi-weekly mortgage plan and you would appreciate assistance in offering a plan that could help.

 They should have the capability to automatically withdraw half of your monthly payment every other Friday from either your checking or savings account. This is the easiest way to implement this plan. Utilize your banks auto debit service.

If they can indeed do this, make sure you tell them that any extra payment that will be accumulated is to be applied directly to principal and not to be held in any other way. This is very important, as you don’t want them to place this money in escrow for taxes and insurance.

Be sure and write down this person’s name and direct phone number for future reference in case of any problems.  Make sure that your new payment plan show up on your monthly statements. This will allow you to keep track of your progress.

Since this is the easiest way to do this, you will probably incur a small per transaction fee, which is totally fair, seeing as how they will be working a little harder every month to accomplish this. However, don’t let them talk you into paying any type of outrageous enrollment fee. If they insist that you pay an expensive fee or they do not have the ability to draft your account on a bi-weekly basis, then you will have to take another route.

Don’t be discouraged if your lender can’t do this for you. There are alternatives. One way to accomplish the same goal is by doing the following:

Open a checking account dedicated to this plan. Then, every other Friday you will deposit half of your loan payment in this checking account. Once a month, pay your mortgage from this account just like you normally would. Either send a check or have your lender automatically debit the account for the monthly amount.

Sounds like nothing has changed, right? Remember the two months of the year that have three Friday payments? Well, by depositing half the amount of your monthly payment every other Friday in this account, you will still make regular monthly payments, but you will also accumulate one extra payment at the end of the year.

Now all you need to do is write a simple letter (see sample letter at the end of this report) and send the extra payment in with this letter.

And there you have it. A simulated bi-weekly mortgage payment plan, accomplished all on your own.

One advantage to this method is that you gain interest while the money is in your checking account and you don’t have to worry about paying any transaction fees.

If you don’t have the willpower to stick with this plan, just remember the savings it will bring. Treat this plan as an investment: an investment that is virtually risk free, and one that you are in complete control of.

Quick Tip

If you can add any additional amount to your monthly payment, you’ll be pleasantly surprised at how quickly the principal amount of your loan is reduced.

If you decide not to go with a bi-weekly payment plan, try this:

Divide your monthly payment by 12. Whatever number you get, just add that to your current monthly payment.

Example: If your payment is $850 per month, then $850 divided by 12 is $70.83. Add $850 and $70.83. Your new monthly payment is $920.83.

This may actually be easier for some people and the savings are even greater with this method as compared to a bi-weekly mortgage plan.

Here is an example of a letter you would send to your lender:

Conclusion

Everything you have just learned can easily be accomplished if you have the willpower to implement a biweekly mortgage plan. The savings witnessed on our biweekly mortgage calculator are very much attainable. Focus on those savings as your goal.

The nice thing about utilizing such a plan, is knowing that you are taking control of your mortgage. Money that was once intended as lender profit is now your savings.

Good luck!