Mortgages

The Bi-Weekly Mortgage Program

The Bi-Weekly Mortgage Program is an accelerated mortgage program that enables a thirty year mortgage to be paid off in as little as twenty three years.

This program is usually set by the lender or a third party agency in which an electronic funds transfer is made from the borrowers banking account every two weeks in the amount of half of the monthly mortgage amount due.

To put in more simple terms, the borrower will be paying thirteen months worth of mortgage instead of twelve.

The Bi-Weekly Mortgage Program is set up so that the extra principle payments that it collects are accumulated in the escrow account and applied to the principle at the end of the year. It is uncertain on who is benefiting from the interest that is accrued on these monies while they are sitting in the escrow account.

This program is an excellent choice for someone who wants to pay off his/her mortgage earlier than thirty years but does not want to be hassled by trying to manage a self- implemented accelerated program. Basically, the payments are conveniently withdrawn every couple of weeks so there are no late payments are confusion to the borrower.

You may also want to consider trying to implement a bi-weekly mortgage program on your own. This is where the borrower implements the above plan without formally doing so through the lender or third party agency. Just make sure that the additional money is going toward the principal.

This is more flexible because you can adjust the additional amount each month depending on your finances for that month. Its also beneficial because you avoid the fees associated with Bi-Weekly Mortgage Programs.

On the other hand, The Bi-Weekly Mortgage Program through a lender or agency may be more effective in the long run because you are not able to be tempted not to pay the additional payments because they are automatically deducted.