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Bi-Weekly Mortgage Payment Services: Scam or Service?


bi weekly mortgage payment service writing checksI recently had a friend show me a post card he got in the mail that said something like, "You have a mortgage AmeriFirst Home Mortgage and we can help you pay it off early and save you thousands!" This friend asked if this bi-weekly mortgage service advertisement came from us at AmeriFIrst Home Mortgage, because he was thinking about paying for it. I decided it was time to bust this myth, for him and for you.

The ads will tell you that paying Company X a yearly fee will help you pay down your mortgage balance sooner, saving you a ton of money on your mortgage. Sounds great, except for that fee. Also, it's not a frequency issue when it comes to paying off your mortgage loan early. These bi-weekly mortgage payment services aren't being exactly honest with you. I won't call it a scam (because frankly I don't want to be sued), but let's let you be the judge.

Would you pay someone to walk your outgoing bills to the mailbox for you? Of course not. That's essentially what's happening here. This third-party service vendor (and let's be very clear - it's a third party, not AmeriFirst Home Mortgage) offers to take your mortgage payment every two weeks instead of once a month. Twice a year this results in 3 half-payments in a month, meaning one extra payment per year. That extra payment, and only that extra payment, is what shaves years off your mortgage. So it's the extra month that helps, not bi-weekly mortgage payments.

AmeriFirst Home Mortgage co-founder and president Mark A. Jones breaks down the bi-weekly mortgage payment myth. Learn how you can shave years off your mortgage loan without paying someone to do it for you. 

You can click here to view the video: Bi-weekly Mortgage Payment Service: Scam or Service? 

Here's an example for you. If your house payment is $1,200 a month, you divide that by 12 months. That $100 can be applied to every month's bill, turning your 12 payments into 13. Make sure you tell the lender or bank that you want the extra applied to the principle. Now you've made an extra mortgage payment for the year, with no fees and no one having to hold onto your money for you. That's right - these companies hold your money and make the payment for you once a month. If they're late for any reason, it's your credit history that suffers, not the company's credit.

Our advice: avoid bi-weekly mortgage payment services and talk to your lender about budgeting the extra payment. You can learn more about buying your first home with "The Essential Guide to Buying Your First Home" at the button below.


(writing checks: Flickr user Jesse Hull)


I have actually been using a third party vendor (nationwide biweekly administration) for years now. It keeps me on the biweekly schedule without having to rely on my imperfect ways. Also they make sure the bank is actually putting my money towards the principle by auditing them. To me it is worth the small cost to make sure things are done accurately, we are talking about screwing up thousands in savings here.
Posted @ Monday, March 05, 2012 1:43 PM by Dallas
Instead of paying that yearly fee (typically more than $300) to a third party for bi-weekly mortgage payments, applying it to your own mortgage will help you shave years off the loan. Budgeting your self is free and can help you save a ton of cash. But hey, if you want to pay someone to help you pay your bills it's certainly your call! Have a great week!
Posted @ Monday, March 05, 2012 1:50 PM by Dan Moyle
I think this is a scam It was presented ina way thatmade u feel tha it was a true bi-monthly payment even through it said bi-weekly. That difference did not redistar in our minds as we had done bi-monthy before and the way the add read we thought it was the same thing. I do not thinkthis should be allowed to be presented the the public in this way ecausewe actually havehad many dealings with this tye of stuff and thought we were beyond being tricked into this typ of deal.  
Buyer beware they ar not doin one thing for yu with the money yo are giving them excet stealing it.
Posted @ Wednesday, July 18, 2012 5:33 PM by Karen Whitingham
It is not worth it trying to explain that biweekly mortgage companies are not worth it to Dallas. He works at the vendor that he says he is using. He has posts all over the internet singing their praises and such.
Posted @ Thursday, January 31, 2013 8:12 PM by Jim
I don't think I could live with myself working for a company that simply capitalized off of others lack of knowledge with a useless non-beneficial product. Just sign up for a shorter term loan at a lower interest rate or add a little extra to your payment when you can. As long as I lack Alzheimers and dementia, I will pay my own bills. :) Good post, finance should be part of the diploma cirriculum, people so often screw up with their money or are taken advantage of. We force students to understand photosynthesis and to locate the Nile River, but omit credit report/rating analysis and how to finance a home???
Posted @ Friday, May 31, 2013 6:33 PM by Adam Young
Received the 'Loan Pmt Admin' of Xenia OH letter yesterday 11/12/13 ... verged on immediate acceptance. Then, realized a prudent new homeowner would check the company out first. Found Dan Moyle's WONDERFUL video and have been saved from the brink of a dire error, not to even mention that DIY is so very easy. Thank you Dan Moyle and the Goddesses Above.
Posted @ Wednesday, November 13, 2013 1:12 PM by Francine Tutu
I could have made the biweekly payment thru my lender instead of Nationwide Biweekly Administration. It costed me $600 as a non-refundable set up fee.
Posted @ Thursday, February 20, 2014 8:41 AM by kiko
Thanks so much! I've been questioning this since I got the flyers. We're first time home buyers so almost were duped! So happy I googled it first, I knew it was too good to be true. Plus they act like there's no fees at all! Took the second phone call to even disclose the fee which they tried to roll into the payments so you don't notice the 300$ initially. Thanks so much for the straightforward unbiased answer we really appreciate advice without trying to sell us something. It's obvious Dallas works for them because I've see the postings in other sites too. Buyer beware for sure,so happy I was aware!
Posted @ Monday, March 31, 2014 4:37 PM by Amberle Anya
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