You don’t need a service to do biweekly payments. It is true that you will reduce the term of your loan and reduce the amount of interest you pay on the life of your loan if you make more payments. Since the biweekly method works by having you pay every two weeks, a total of 26 payments per year, you are essentially paying one extra monthly payment during a year span. So, instead of making only 12 monthly payments, you are actually making 13 monthly payments split in half every two weeks. If you can afford to do this, it’s a great deal. But, you don’t need a service or to make any changes to do this – all you have to do is pay extra on your monthly bill. By cutting out the middle man, you will be able to contribute money directly to your principle and you will be able to determine when and how much extra you want to pay towards your loan. If times are rough for your family, you won’t be forced to make that extra yearly payment that you may not have the money for. Plus, keep in mind that these companies have something to gain by you using them to switch payment plans.
While it may not be readily apparent, they may have hidden fees or other costly reasons for helping you make the switch. If you have any questions about biweekly payments or have other questions, please contact Creekside Mortgage, Inc. at 360.571.LOAN (5626).