Bi-Weekly mortgage, who needs it? – Pinnacle Capital Group – Bi-Weekly Mortgage

Bi-Weekly Mortgage

Did You Know?

Making one extra mortgage payment a year will knock years off your mortgage and save you thousands of dollars.

If you search for "bi-weekly mortgage" with an Internet search engine, you will be overwhelmed by the number of companies offering "Bi-weekly Mortgage Reduction Services" or "Bi-weekly Savings Programs." Beware, you are entering dangerous waters.

Beware of Bi-Weekly Mortgage Reduction Services and Savings Programs

These "Reduction Services" and "Savings Programs" are charging you fees to "make a bi-weekly mortgage payment" for you. The enticement is that they will save you an impressive amount of money on your mortgage and reduce the number of years you pay on your mortgage.

The enticement is that they will make bi-weekly mortgage payments for you.

The real story is that they are not actually making bi-weekly payments on your mortgage. They are making bi-weekly deductions from your bank account. These funds are placed into an account from which your monthly mortgage payment is made (which only takes 24 deductions - but during the course of a year 26 deductions will be made from your account). With the extra 2 deductions, the "Service" makes an additional mortgage payment. In other words rather than making 12 mortgage payments, 13 payments are made.

The enticement is that they are providing a special service to you that would either not be possible for you to get on your own or that you won't have the time or discipline to make it happen.

The real story is that you can easily make an additional mortgage payment each year. An easy way to do this is to have your mortgage payment automatically deducted from your account each month with an additional 1/12 payment to be applied to the principal amount. At the end of 12 months, you will have made an additional payment. And you won't have to pay any fees to a "Service".

Mortgage News Daily:

January Housing Scorecard Released by HUD, Treasury

2/6/2012 3:41 PM

Posted To: MND NewsWire

The Departments of Housing and Urban Development (HUD) and Treasury issued the administration's January Housing Scorecard on Monday. The report is essentially a summary of data on housing and housing finance released by public and private sources over the previous month and/or quarter. Most of the ...Read More

Industrial and Multi-family Loans Drive Annual CRE Increase

2/6/2012 3:17 PM

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) reports that commercial and multifamily loan originations were down 7 percent in the fourth quarter of 2011 compared to the third quarter but were 13 percent higher than originations in the fourth quarter a year earlier. The year-over year change was driven by...Read More

MBS RECAP: 2/6/2012

2/6/2012 3:17 PM

Posted To: MBS Commentary

MBS Live : MBS RECAP Open MBS Live Dashboard FNMA 3.5 103-28 : +0-05 FNMA 4.0 105-23 : +0-07 FNMA 4.5 106-27 : +0-02 FNMA 5.0 108-02 : +0-04 GNMA 3.5 105-08 : +0-05 GNMA 4.0 107-29 : +0-05 GNMA 4.5 109-07 : +0-03 GNMA 5.0 110-30 : +0-02 FHLMC 3.5 103-19 : +0-04 FHLMC 4.0 105-11 : +...Read More

European Headlines Help Mortgage Rates Bounce Back

2/6/2012 2:34 PM

Posted To: Mortgage Rate Watch

Following Friday's employment data, Mortgages Rates moved quickly higher. In most cases, the changes were seen not in the quoted interest rates themselves, but rather in the closing costs required to obtain those rates. A small number of lenders' Best-Execution rates rose to 4.0%, ...Read More

Nearly 100 Metro Areas on Improving Market List

2/6/2012 12:26 PM

Posted To: MND NewsWire

The list of Improving Housing Markets (IHM) maintained by the National Association of Home Builders (NAHB) took another big jump in February, rising from 76 in January and more than doubling the 41 reported in December. There are now 98 metropolitan areas representing 36 states included on the list...Read More

MBS Stable Enough For Potential Reprices as Treasuries Reinforce Trends

2/6/2012 11:49 AM

Posted To: MBS Commentary

( MBS Live ) - Against today's data-free backdrop, the only real market mover has been the earlier scheduled Fed buying (30yr sector of Treasuries) that left the long end of the yield curve in slightly better shape. 2s v 10s moved down to 167 from 170.8 just before the Fed buying. ...Read More

MBS MID-DAY: 2/6/2012

2/6/2012 10:17 AM

Posted To: MBS Commentary

MBS Live : MBS MID-DAY Open MBS Live Dashboard FNMA 3.5 103-24 : +0-01 FNMA 4.0 105-19 : +0-03 FNMA 4.5 106-25 : +0-00 FNMA 5.0 108-01 : +0-03 GNMA 3.5 105-04 : +0-01 GNMA 4.0 107-25 : +0-01 GNMA 4.5 109-04 : +0-00 GNMA 5.0 110-29 : +0-01 FHLMC 3.5 103-15 : +0-00 FHLMC 4.0 105-08 :...Read More

All FHA Today: Compare Ratios, Streamlines, Condo Approvals, LI Program Changes

2/6/2012 9:14 AM

Posted To: Pipeline Press

Some will call this a useful tool and a time saver - others will say it is another sign of our privacy going away and "Big Brother" seeing everything. Enter an address, and it displays a map of the area showing all residences/businesses, including their phone numbers...Read More

The Week Ahead: Limited Data Calendar Leaves Auctions, Greece in Focus

2/6/2012 7:02 AM

Posted To: MBS Commentary

The Employment Situation Report is normally preceded by "sideways uncertainty" and followed by noticeable directionality. But this time around, the opposite is true. Although there were some fast and moderately large losses on Friday following the report, it could be argued that th...Read More

MBS RECAP: 2/3/2012

2/3/2012 3:21 PM

Posted To: MBS Commentary

MBS Live : MBS RECAP Open MBS Live Dashboard FNMA 3.5 103-24 : -0-10 FNMA 4.0 105-17 : -0-09 FNMA 4.5 106-26 : -0-04 FNMA 5.0 108-01 : -0-02 GNMA 3.5 105-02 : -0-11 GNMA 4.0 107-24 : -0-07 GNMA 4.5 109-03 : -0-05 GNMA 5.0 110-27 : -0-03 FHLMC 3.5 103-16 : -0-09 FHLMC 4.0 105-06 : -...Read More