If you need to keep the house, call me and I do arrange real equity lending - meaning I will use the equity on your property to momentarily ease your financial status until you get back on your feet. Check with your bank as they may add additional interest on the late payments or foreclose you. You can also skip a payment at no charge (most banks offer this feature) I think once a year. Also check with your mortgage insurer if there is a plan available for you to momentarily get you out of trouble. email me - debtfree@victorcatalan.ca if you need further information.

In Canada, speak with the bank and address this issue a front. They can tell you what is needed. Why are you late in payments ? If this is a temporary circumstance, email me and I will see if we can help you get back on your feet.

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I have a 15 year mortgage, with 6 years to go. it was for $80,000, @ 7.0 interest, payments $745.91 a month. how much sooner would i get it paid off with bi-weekly payments?

On average, paying your mortgage every 2 weeks rather than once a month or twice a month will save you about 3 - 4 years off the term of your mortgage. The extra 2 payments per year when paying bi-weekly do actually help and you will save thousands in interest. Even just boosting your mortgage payment by $25 per payment will save you another year or so on the term. With the info you have given, had you been paying bi-weekly from the start, you'd probably only have 2 years left on your mortgage.

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I got a letter in the mail from the bank that says paying our mortgage payment bi-weekly instead of monthly could save us $40,000 to $100,000 in interest and reduce our mortgage term by 7 to 9 years without refinancing. how does this work?

The "interest on 15 days instead of 30" isn't always true. Many mortgage companieswho offer this program just hold the first half till the second half arrives. The mortgage company might make some interest, holding all those half payments for 15 days, but you don't.The real benefit is that paying every 2 weeks make for 13 months. You make an extra payment which goes right to the principal.Only the mortgage professional will solve your problem. So don't waste your time just check out the link and discuses your problem.

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I bought home almost 4 years ago... and my current principal is now $178,700 on my house (at 5.875%), and with a monthly current monthyl payments of $1,122. according to my mortgage company, i have 315 more payments left (about 26 more months!). my question is... if i switch to bi-weekly payments, and pay $2,100 twice a month for the first year (jan to dec 08), and $3,000 twice a month (for jan to dec 09), how much will i have left on the principal on jan 2010?, and how much more payments do i have to make after that! thanks for your time! correction: 26 more years (not months!)

Assuming that you make your first payment on 1/1/08 and make payments every 14 days throughout the year, you would be making 26 payments each year. Your balance on 1/1/10 would be $53, 564. If you continue making bi-weekly payments of $3,000.00 your loan would be paid in full 10-05-10. It would take a lot of discipline to keep this up for nearly 3 years, but the reward is great!

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My loan is for 106,900 and i have a 30 year loan with a 5% int. rate. i am going to make an extra 500 dollar payment each month. i was wanting to know if it would be beneficial to do a bi weekly program or not? would it be more beneficial to do both though

Not really. If you simply include an extre $500 with each mortgage payment you will end up with a result very similar to making bi-weekly payments.

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I understand that paying your mortgage bi-weekly as opposed to twice a month can help you pay off your mortgage more quickly, in that you end up making 4 more payments a year by paying bi-weekly. however, is there any further advantage to paying weekly instead of bi-weekly?. example: $1,200 bi weekly $600 weekly. i read that weekly can save you even more money here at this website (below). i just don't see how it makes a difference? thank you! http://www.amortization.com/40_year _mortgage_interest_saving_tip.htm

Makes a lot of difference, the more principle you pay ahead and the earlier it is, the less interest you pay.

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I understand that you save more money by making 1/2 of your monthly mortgage every two weeks. now my question is, do you have to make this payment twice a month or every two weeks? there is a difference of a full payment each year. obviously i'd still save more by making payments every two weeks because i'd have that extra full payment every year, but do you still save by making those 1/2 payments twice a month or do you have to do it every two weeks?

The entire premise behind bi-weekly mortgages is to make that 13th payment every year. Many bi-weekly plan sellers will say that they apply your payments every two weeks, but in practice that almost never is the case. Your excess money builds until they slap a big chunk down once or twice a year. Many banks will charge a set-up fee to enroll in a bi-weekly plan, and most will also charge you a fee every single time they pull money from your account. $5 every two weeks adds up in a hurry. You can have almost identical results by simply calculating 1/12th of your mortgage payment, and adding that amount to every monthly payment you make. At the end of the year, you will have paid 13 payments. In most cases, this will take a 30 year loan down to about 22.5 years, and save you tens of thousands of dollars in interest. The bi-weekly is ok for people that don't have the discipline to make the extra payments. Too many people think they'll send an extra check in December, but the holidays hit, travel plans get made, and it never happens. But the extra fees make it rarely worthwhile. Not to mention, few people are paid every two weeks. But the bank will yank money out every two weeks, so if you bounce one, or go underwater on your bank balance, you could end up with an NSF charge of $30 or more. Do that a couple times a year and you're really costing yourself. Paying one half of your payment twice a month will not help you at all, don't do it.

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I have $1000 dollar in extra income a month that i would like to send as an extra payment to my mortgage. given the current housing crisis, i have about $30k in negative equity, and my income is too high to qaulify for any federal assistance programs. to help pay this equity down, i plan to send an extra $1000 a month to my mortgage. is there any benefit in sending this money in weekly payments ($250 a week) or even bi-weekly ($500 every other week) vs. just doing the one lump $1000 payment a month. i cannot seem to find any amoritization schedule that take bi-weekly or weekly extra payments into account. thanks.

You need to contact your mortgage company and ask them when the balance on your account is calculated. if it's done on a daily basis it doesn't matter when you make the payment but if it's only calculated once a month you should try to make the payment the day before the calculation is made. That way you get maximum benefit and keep the interest the cash was earning for yourself. Ian M

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Depends on the mortgage rate terms you were able to negotiate... is the rate fixed for the next 5-7 years? If so, is the rate less than 5.5%? If so, you would be better advised to pay the least amount possible towards you mortgage, and invest > 10% of you salary in T-Bills, CDs, Savings, mutual funds, etc. The 28 day T-Bill has been yielding in excess of 5.25% APR over the past few auctions. Go to http://www.treasurydirect.gov for ways to invest directly into safe government bonds without paying any fees to a middleman. It is like if you budgeted $20 to buy 4 pounds of meat that costs $5/lb. What if you get to the store and a slighter better cut of meat is 70% off on sale for $2.50/lb. Do you still buy your 4 lbs of meat for $20, or do you save $10 by purchasing the better meat? With that extra $10, you could: * buy an extra 4 lb of meat * buy bread, milk, and corn * go to the movies Every time you make a purchase/investment/payment, you are exercising an option of trade-offs and asserting your right in a free-market economy to get the best deal. Go for it!

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We've just refinanced our mortgage and they offer the option to make weekly payments. it was mentioned during the closing that doing this would let us pay it off several years sooner. in looking online about this, i see a lot of things about bi-weekly payments and that this do help out because you are actually making an extra month's payment each year so i understand how that would help. this would be the same as with paying every week. however, the way they set it up is that if a month has 5 weeks payments only go out the first 4 weeks so there would not be an extra month's payment. also, payments are taken out and then applied to the next month's payment (ex: payments would be made the first 4 weeks of may and this would then be applied to my june mortgage payment). so, how would it benefit us to do it this way?

Actually, yes they would for the same reason that bi-weekly payments do. Think about this, the mortgage interest is compounded against you for the entire month or term. At the end of that term, midendbeginning of the month, you make your payment, which as you're probably used to, is mostly interest. Well, when you take advantage of the bi-weekly option, you chop that interest off half way up the hill so the principal interest stops growing and compounds that much less against you and thus you are saving. If you do the same thing on a weekly basis, it prevents that interest from compounding that much more. Therefor, you pay that much more principal and less interest over the life of your mortgage. Take this scenario: You have a $200K mortgage with a 30 Year term and 6.5% interest rate. Lets say you make 12 payments per year, well, over the life of the loan you would pay apx. $250K in interest. If you made 52 payments(1/4 payments) per year, you would only pay about $85K interest over 30 years or you would pay the loan off earlier. Now let's say you made 26 1/4 payments, you would pay roughly $161K in interest.

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The idea is legit if you are 1000% in shape. (The program itself is a ripoff) What you do is open up a large HELOC (good luck now) Treat that as a checking account, and pay all your bills from it. Deposit your paycheck (and all other income into this) Over time your balance goes down. As long as you have positive cash flow EVERY month, you will pay off your mortgage much sooner. If you are barely getting by DON'T EVEN THINK OF DOING THIS! The software they sell is junk.