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HousingWire recently reported on a national company under scrutiny - and paying the price - for allegedly deceptive marketing tactics. The investigation and resulting lawsuit centers around biweekly mortgage payment services. This is something we've covered in the past. Bi-Weekly Mortgage Payment Services: Scam or Service?
There are several different options to pay off a mortgage more quickly. Bi-weekly mortgage payments can be made or extra principal can be added to the normal monthly mortgage payment.
A house is one of the best and also most costly personal assets one can acquire. It is therefore only prudent to do everything possible to reduce mortgage costs. One of the best ways to do this is with bi-weekly mortgage payments.
Bi-weekly mortgage payments have become a favored strategy by many homeowners looking to shorten the length of their contract obligation and save some money while doing so. The process is a fairly simple one. Rather than making a single monthly mortgage payment, as is most typical, one arranges with their mortgage lender (a rare occurence with most lenders) to make a one-half payment every two weeks instead.
Paying off your mortgage early is a great thing, and you can do it relatively easily and painlessly. You don't need to pay to join a service (sometimes a couple hundred dollars) then pay a continuing fee to have a third party company pay your mortgage payment. You can do this yourself. Bi-weekly mortgage payments work in a general sense, but the pay-services do not.
We've made some folks mad by sharing the cold, hard truth. I knew we'd rattle some cages when we decided to talk about bi-weekly mortgage payments and the companies that offer the service for a price. Apparently we rattled someone's cage pretty hard. A company called us on the phone this week to let us know how much we "got wrong." Now, let me start by saying that everything we've said is factual and is not intended to bash "an entire industry" as this person said to me. In fact, we believe in paying for services you find valuable. If you need help setting up and sticking to a budget, certainly feel free to find a company you can pay to do that for you. However, AmeriFirst Home Mortgage does not suggest that you pay only for a bi-weekly mortgage payment service. Let's look at the differences.
DISCLAIMER: This article is merely a question about general bi-weekly mortgage payment services. This does not reflect an opinion of any particular company/service. Comments below are not solicited; they are the opinions of readers weighing in on their own accord. UPDATE: HousingWire reports fines levied against biweekly mortgage payment services company. I recently had a friend show me a post card he got in the mail that said something like, "You have a mortgage with 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, because he was thinking about paying for it. I decided it was time to bust this myth, for him and for you. Download our Essential Guide to Buying Your First Home here and start planning today!