Ok, so some of you know I am taking a financial class. Nothing fancy, just a course on personal finances.

So I am 95% sure about this, but does anyone know where/if you can get a home mortgage loan that will take bimonthly (twice a month) payments and apply your payment when your payment arrives and NOT only once a month?

Gracias!

Doh, should have posted this on the finance forum, however, the lounge gets more traffic.

Have you tried asking your mortgage company directly if they accept payments on principal? Most of the bigger ones do - it wouldn't hurt to ask. When we send payments out, they apply it as soon as they receive it.

I've yet to hear of a lender who will do that. It doesn't mean that it doesn't exist, but most mortgage lenders aren't looking to offer that payment structure, simply because it means less income for them.

So I am 95% sure about this, but does anyone know where/if you can get a home mortgage loan that will take bimonthly (twice a month) payments and apply your payment when your payment arrives and NOT only once a month?
Unfortunately I'm not aware of such a product.

There are some other solutions though, who is your local bank?

I bank primarily through my Credit Union. I am ok with my mortgage. If this woman in my financial class was right, then I was looking for a better mortgage, but it's not true so I'm fine where I am.

She may be right but it's not a standard product most mortgage companies offer.

You can easily make twice-monthly payments yourself, even automatically.

Just login to your bank's online billpay and setup a re-occuring payment for a certain date and amount.

Am I not understanding the question correctly that I'm way off-base, or is it fairly starightforward? Seems like I'm the only one who says you can do it...

She may be right but it's not a standard product most mortgage companies offer.

You can easily make twice-monthly payments yourself, even automatically.

Just login to your bank's online billpay and setup a re-occuring payment for a certain date and amount.

I know that but if the bank only deposits the payments once a month it will not pay off my mortgage any sooner. I have no problem holding onto my money for the month.

Am I not understanding the question correctly that I'm way off-base, or is it fairly starightforward? Seems like I'm the only one who says you can do it...

I cannot find a lender that will do what I am asking about. Sure, banks will take bimonthly payments but they will hold then money until the recieve the second half of your payment. If they applied the money when they first recieved it, it would relieve you 14 days of interest on principle you just paid.

Anyway, I'll climb under a rock after this question. LOL. I'm just confusing everyone.

I know that but if the bank only deposits the payments once a month it will not pay off my mortgage any sooner. I have no problem holding onto my money for the month.
Just to clarify:

Deposits = your checking and savings accounts, for instance tied with your ATM card or paycheck direct deposit.

Payments = when you send money to your mortgage lender or they debit it from your account every month via ACH.

If you meant to say payments instead of deposits, that is incorrect. Payments are posted to your mortgage loan when they are received.

For example.
3/1/2005 - mortgage company automatically debits $1,200 from your checking account.

3/14/2005 - since you setup automatic billpay from your banks website they send $xxx to your mortgage company electronically. It should post to your mortgage account in 2-3 business days, possibly sooner. The mortgage company does NOT "hold" onto your funds until your next payment is due 4/1/2005.

Ahhhhh.... I've been going over this in my head and have called my lender.

They may take your payment, but it is NOT applied to your mortgage when they do. They only apply it once, hence the amoritization tables they can give you on the 1st day of a 30 year loan. They apply payments towards principle 12 times a year, 360 times over 30 years. If you pay extra principle, then of course it cuts down on the interest paid and life of the loan.

Thought I'd stick my nose in here...

First of all, typically when somebody recommends making half the payment, twice as often, what they are really saying is make half of your mortgage payment every two weeks, not half twice a month. What's the difference? Well making half the payment every two weeks actually means you'll make 13 mortgage payments a year...

There are third-party companies that coordinate programs like this with your lender, but they charge an annual fee to maintain it. The easiest way to do this entirely on your own is to increase your monthly mortgage payment by 1/12. Since a lot of mortgage companies do (unfortunately) only calculate interest once a month, this will have very nearly the same effect (you'll actually be slightly better off this way).

Just my two cents...

it's the automatic millionaire plan.

Actually that is covered in David Bach's books... and many others...

btw, I'd recommend The Automatic Millionaire (and Bach's other books) for anybody that's looking for a way to put saving for retirement on autopilot...

good info here

good info here
Thank you :)

DigDoug,

Ditech will do this. About 4 months after we received a home equitly loan from them, they sent us a letter, offering us this program. They wanted $400 to enroll us in the program. We declined.

The Difference (http://www.mtgprofessor.com/A%20-%20Biweekly%20Mortgages/Alternative%20Early%20Payoff%20Plans.htm)