Quote:
Originally posted by RiNkY:
Quote:
Originally posted by Coop:
[b]Read this...
http://www.mtgprofessor.com/A%20-%20Biwe...%20increase.htm

You'd actually be better off simply paying 1/12 of a payment extra each month.

Overall these acceleration programs are good. They will increase your equity, and save you a significant chunk of money. Prepaying yourself is better, you avoid any enrollment fees or monthly fees they might come with, as well as paying down your principle faster. You will save a few thousand dollars doing it yourself over the course of the loan.
But that only gives you 1 full payment every year. I think if you go with the bi-weekly deal, you pay 2 extra payments per year.

I think it makes sense if you get paid every 2 weeks. My mortgage is so small tho that I pay double payments every month, so I'll have my 30 year mortgage taken out last year paid off in another 8 years or so.[/b]
It's the same amount extra every year... I think the difference is with the equity accelerator the extra payment isn't applied until the end of the year. If you do it yourself, the extra 1/12 payment is immediately applied to the principle.

In the example from the web site I linked, it works out to a difference of about 3 payments.