Most banks and mortgage companies have different payment programs that you don’t have to qualify for. All it takes is a phone call to find out what types are offered and to let them know which one you want!
Get your calculator out! If you are making monthly mortgage payments – divide that payment in half. Most people are paid biweekly – so why not have HALF your mortgage payment automatically deducted from your account on paydays. Simply changing your mortgage payment from monthly to biweekly, adds an extra payment to your mortgage each year! Instead of 12 payments you are making 13, with the 13th payment going directly to the principle balance! Doesn’t sound like much? Well, figure you have 25 years left on your mortgage if you kept monthly payments – biweekly payments could knock off 3-5 years!
The bank or mortgage company may charge a fee for the service of deducting your payments from your account – but I’m sure you could try and negotiate this!
Using this method actually helps budgeting household expenses easier. Instead of one paycheck swallowed whole by a mortgage payment, you can actually maintain a better – more even – cash flow.
I’m speaking from experience. We bought our house five years ago, set up biweekly payments immediately, and have already shaved 2 years and 3 months off the end of our loan!