Paying More Fees with a Bi-Weekly Mortgage
While a bi-weekly mortgage looks great on the surface because of the ability to make payments faster and ultimately finish your loan at a quicker rate along with paying less interest overall. Before you can even start to make these payments at an accelerated rate, your lender will almost always charge you a per-payment fee or an upfront cost just to setup. In the worse situations, they will tack both charges on to you, so not only are you paying a fee just to make extra payments, but you are being charged every two weeks as well. Even though it only adds up to a few thousand dollars over the course of the loan, compared to saving the fifty thousand dollars saved from using bi-weekly mortgages, there is something else to realize. Almost all 30-year mortgage terms allow you to make additional payments to the principal without facing any penalty, therefore eliminating the need for a bi-weekly mortgage as well as all of those annoying fees. If you are looking for more mortgage information or tips, Portland Mortgage is a great source to find videos and news as well.
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