Buying A Home
ErikaB123
member
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Our tech team has launched updates to The Nest today. As a result of these updates, members of the Nest Community will need to change their password in order to continue participating in the community. In addition, The Nest community member's avatars will be replaced with generic default avatars. If you wish to revert to your original avatar, you will need to re-upload it via The Nest.
If you have questions about this, please email help@theknot.com.
Thank you.
Note: This only affects The Nest's community members and will not affect members on The Bump or The Knot.
Mortgage options...help!
We have been living in our new home for about 3 weeks now and we have loved EVERY second of it. We received a letter in the mail giving us the option of paying our mortgage biweekly instead of once a month. According to this letter, paying the same amount biweekly (not adding anything extra monthly) will shave off 7 years on our loan and save us tens of thousand of dollars. Is anyone else out there paying biweekly? Can anyone point out to me a disadvantage in doing this? It seems like a great option but maybe some of you know something I don't?
Re: Mortgage options...help!
It is absolutely a great option and that is certainly true. Unfortunately, my bank doesn't have a program like that NOR do they allow me to split my mortgage in half and pay one-half at the at the mid month mark and the other half at the beginning of the month mark (with the whole thing still being on time for the first of the month). You can also cut about 10 years off your mortgage doing that because, in essence, you are paying half your mortgage two weeks early every month and that saves a lot of interest.
According to them, most banks don't allow it, but I'm thinking I might need to revisit this issue.
www.maeisbeforejune.net
We do that. It does save you money on your mortgage over time and does shave years off the loan. The only drawback we have seen is that paying biweekly means that in two months every year you will have three mortgage payments instead of two.
It is just how the payment schedule works out with 52 weeks in the year and 26 payments (it's 26 [instead of 24] because you're making a 13th monthly payment). So in those two months you will need to plan for that third payment.
Another way to make an extra payment every year is to divide your normal monthly mortgage payment by 12 and then add that extra amount to your principal each month.
I do that with my car loans. On a 5-year car loan, if you make two extra payments/year, you will roughly cut one year off of your loan. I find spreading that amount over an entire year adds an almost unnoticeable amount to my payment, but then feels like a huge bonus when I can subtract my car payment out of my budget a year early.
We put 'spare money' at the end of the month on our mortgage - after the bills, retirement, charity, savings, etc are taken care of. We've shaved a few years off our mortgage this way too.