Is the BiSaver Mortgage Payment Program a Good Idea?
One of the ways you can save money on your home mortgage loan is to make a biweekly mortgage payment, rather than one that is monthly. This actually reduces your principal, reduces the amount you pay in interest over the life of the mortgage and reduces the amount of time you are paying your mortgage. The reason this works is because you pay every two weeks, rather than just once a month.
Consider this: I have a $1350 a month mortgage. Every year, on a monthly plan, I pay 12 x 1350 = $16,200. But what if I paid every two weeks? There are 52 weeks in a year, so I would make 26 (52/2) payments a year of $675. That is $17,550 paid every year. It amounts to an extra mortgage payment every year. According to this biweekly mortgage calculator, I would have my mortgage paid off in 24.3 years, rather than 30.
But remember: Your savings could be significantly reduced if your home mortgage loan comes with prepayment penalties. So keep that in mind.
BiSaver mortgage payment program
Now there is a program that is designed to make these bi-weekly mortgage payments for you. It is called BiSaver. However, there are fees attached to the program. Here is what My Money Blog says about this mortgage payment program:
After some research, I found out that “BiSaver” is simply a third-party company that goes around pitching this system to mortgage holders like it is some sort of secret sauce. But really they just accept the payments, and then forward them on to the lender. While it purports to “pay for itself in interest savings” almost instantly, it also neglects to mention that anyone can do this for free.
So, really, you could check with your mortgage lender. While some lenders won’t accept these payments (they want all the interest they can get), there are pleny who do. Before you commit to a mortgage payment program, first check with your mortgage lender to see what options are offered.
Tags: mortgage payment, mortgage payment program, home mortgage loan, bi-weekly mortgage payment,
BiSaver, mortgage lender, mortgage loan blog
