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Does anyone know what this is?

A while back I saw an ad for a company that pretty much cycles your payments or something to pay down your mortgage more quickly. I can't find anything about it now, but at the time I wasn't in a position to do it and I might be now.

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MandySilver87

Asked by MandySilver87 at 1:41 PM on Oct. 9, 2008 in Money & Work

Level 3 (18 Credits)
Answers (2)
  • You can usually work it out with your mortgage company yourself without paying someone to do it. It's when you make 2 equal payments per month instead of 1 payment. Like if your payment is $700/month due on the 15th, you pay $350 on the 1st and $350 on the 15th. The idea is that you're paying interest earlier in the month and it should cut down your overall interest. Alot of banks are now offering that as an option when you set up your loan. Call your mortgage company and ask them if you can arrange that with them. Most of the time you dont' have to refi or anything like that.
    customcat2000

    Answer by customcat2000 at 1:58 PM on Oct. 9, 2008

  • I have heard of what customecat2000 as mentioned.


    We do one payment but ontop of it we pay extra and apply that extra to principle only.   We bought our house a little over a year ago, 30yr fixed mortgage, we have already taken that down 5yrs with paying extra ontop of our normal payment, remember make sure you put that extra for principle only.


    I think it works like this, the extra money knocks down what you owe on the principle, so your interest will go down since your principle is.  Anyway, it's working for us. 


    Good luck!!


    http://www.4yourfam.com

    lovin2Bme

    Answer by lovin2Bme at 2:28 PM on Oct. 9, 2008

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