Quote:
Originally Posted by gerryann
Does anyone know if "Nationwide Bi-weekly Administration" is a legite company? I've received letters from them regarding their bi-weekly program. I know that paying bi-weekly can save a lot of money...just not sure if this particular company is reputable.
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These companies play on your lack of knowledge in the administration of mortgage finance. By sending them a check every two weeks you in fact make 13 payments in a year. Therefore your debt is paid off sooner with less total interest expenditure. Same thing accomplished by including 1/12th of your regular pymt as a "principal only" payment with each regular remittance. Same final result- no added fees. By using the extra principal option you have better control and can vary the amount of extra principal payment each month. Send more in months when your cash situation is good and less or none if inflow is less or expenses are higher.