Splitting Mortgage Payments

[firemanjj82]

Who here does it? I know in the past I'd receive notices about signing up for bi-monthly payments, but I'm thinking it would work just the same if I sent in half at the first of the month and half around the 15th.

What say y'all? Thinking about doing this with my truck payment as well. That way, I don't have such a huge amount coming out at once; spreads it out more over the month.

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[splitfinger]

I know if you pay 1/2 of your payment every other week, you will pay one additional payment per year. On a home mortgage, this reduces your overall principle by several thousand dollars over the course of the mortgage, plus on a 30 year mortgage, it will reduce the payoff to about 23 years.

My Son is a member of a credit union and he has his payment taken out weekly thru direct withdrawal.

Good luck.

[HoustonHunter]

I think it's 6 one way and half a dozen the other when you're doing that.

When paying my bills, I hold back half of each payment from each paycheck (24 paychecks a year).

[mmoses]

the bi weekly thing is a little different. You make 26 house payments vs 24(if you pay 1st and 15th). So its the same as making an extra payment a year.

You are better off making a one payment to principle only inside of making a payment every two weeks.


My wife's car and all of our bills come out about the 15th. Mortgages comes out on the 1st.

My opinion, working on saving some money and make an extra payment or two.

[captainsling]

Every mortgage company that has offered that wanted to charge a fee to do it. We tried sending half payments one time and they told us they would not take partial payments.

[firemanjj82]

When paying my bills, I hold back half of each payment from each paycheck (24 paychecks a year).

This is what I do, but with my mortgage only. I'm thinking about doing it with all my payments that are consistent, such as truck, phone, credit cards, etc.

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[Catfish270]

Not sure that there is really any significant financial benefit to splitting your monthly mortgage payment up into two payments (assuming your mortgage company allows you to do that) as opposed to one payment per month. Yes, it would make it smoother at paycheck time, but I am sure you have enough discipline to earmark 1/2 of your payment and not spend it before it is time for the monthly payment.

[EastTexasMan]

I just add $200 a month to my mortgage for principal only and let it ride.

[Ungawa]

I just add $200 a month to my mortgage for principal only and let it ride.

This is what we did every month we paid extra and had it applied to the principal. Paid our 30 OFF in 13 years.....**** near starved to death, but we did it.. WooHOO!!!

[EastTexasMan]

This is what we did every month we paid extra and had it applied to the principal. Paid our 30 OFF in 13 years.....**** near starved to death, but we did it.. WooHOO!!!

Yeah I'll knock 8 years off with $200 extra a month.

[TxAg]

What's your rate? How many years left? Maybe refi into a lower rate or shorter term...or both.

[dustoffer]

"You are better off making a one payment to principle only inside of making a payment every two weeks."

For sure---just be sure the mortgage holder applies any extra to principal and not to interest.

[bownutone]

I kept a separate account just for the mortgage and direct deposited into the account. The monthly payments were drafted automatically each month. As more income became available over the years I would deposit extra into the account and make extra principal payments. Not really structured but paid off 30 year mortgage in 16 years. Now that account is used to save for vacations, Christmas and fun stuff and an emergency account.

[firemanjj82]

What's your rate? How many years left? Maybe refi into a lower rate or shorter term...or both.

It's not an issue of the rate or anything. More so me just seeing how it works for everyone else. I like the idea of $200 extra. We do snowball our finances, so once we get to that part of our budget, I hope it's a bit more than $200.

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[Gummi Bear]

I refinanced several years ago, and went to bi-weekly payments. I have it set to autodraft from my account, I never miss it, and it is sure nice to make an extra payment every year.

I only lack a few more years and I'll be paid off (been in this house for 16 years in August).