A mortgage broker will tell you that the biweekly mortgage payment scheme can be both good and bad. If you don’t handle your payments in the right manner the biweekly mortgage payments aren’t going to work for you. However, dealing with biweekly payments can in fact be a good thing, as long as you avoid a few simple errors. So, how can you avoid the biweekly mortgage scam? Click here to read more info about mortgage broker.
Set Up Regular Payments Directly To the Lender
If you want to avoid the so-called biweekly scam you may want to ensure you handle the payments. You should set up a payment system so that you personally send a check off to the lender without going through the bank. This is probably the very best way to help avoid the so-called scam and ensure your lender receives the payments. A mortgage broker can help you to set this system up or tell you more if you are interested in these payment types. Read more at http://www.foxbusiness.com/features/2015/09/02/biweekly-mortgage-payments-could-be-bad-idea.html
Is This A Good Idea?
Biweekly mortgage payments can in fact be extremely good for most home buyers. They have the ability to save a great deal of time repaying their loans back. For example, many home buyers have found they are able to make one or two extra payments per year; so instead of the standard twelve payments, buyers make thirteen or fourteen. However, there are many who don’t like the idea of the biweekly payments because they think it’s a scam but in reality it isn’t as long as the payments are handled correctly. It can be a good idea if you are willing to give it a try. Ask mortgage brokers Melbourne for more information.
Avoid Automated Banking Systems
To be honest, when the bank sets up the biweekly mortgage payment you can easily spend more money than you save. For instance, some banks may charge you a set up fee and while the fee isn’t usually more than a few hundred dollars, it can still be quite costly. Secondly, you can’t be sure whether or not the bank is in fact directing the money as it should. It may be they are sending the money in one sum rather than two. Automated banking systems can work for a lot of utility bills, but sometimes for a mortgage payment, they don’t always work properly. You may want to talk to a mortgage broker about setting up one of these systems.
Avoid the Scams
There are quite a few little scams when it comes to the biweekly mortgage payments. However, hopefully you won’t fall victim to them. If you are going to choose to make payments every two weeks, you might find you can repay your mortgage back potentially five or six years ahead of time. This can make all the difference and it certainly will be something you want to give a lot of thought and consideration to. Biweekly payments don’t always have to be a scam, not if you handle them correctly. If you want to know more contact a mortgage broker or talk to a mortgage adviser.