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View Full Version : morgage - don't do me any favors..


Ben
July 14th 03, 04:12 AM
Hi,

I received a letter from the morgage company with a great deal. Instead of
paying once a month I could join a program where you pay a couple of extra
dollars on a 2 weekly cycle (aprox. 2 payments per month). The letter said I
would pay off my loan 7 years early and have after several years a lot more
money down on the house at my disposal. I did a caluclation of the
difference between the 2 amounts - i.e. current monthly payment compared to
paying a couple of dollars more than half of the monthly payment every 2
weeks and it turned out that I would be paying effectively more than $100
more per month. Quite a difference. Then I read the fine print and for the
privilege of paying every 2 weeks and over $100 more effectively per month I
would have to pay a fee of $200 plus $7 / month (or something like that). Of
course nothing stops me making these payments on my own independant of them
for nothing anyway. It is surprising that anyone would accept a deal like
that.

regards,
Ben

Bubbalicious
July 14th 03, 01:27 PM
"Ben" > wrote:

> where you pay a couple of extra
>dollars on a 2 weekly cycle (aprox. 2 payments per month)

Yes......you are making 13 payments a year instead of twelve. Any paid off
debt is a return on your investment. You don't need the bank to sell you this
plan.......just do it yourself!

Bubbalicious
July 14th 03, 01:27 PM
"Ben" > wrote:

> where you pay a couple of extra
>dollars on a 2 weekly cycle (aprox. 2 payments per month)

Yes......you are making 13 payments a year instead of twelve. Any paid off
debt is a return on your investment. You don't need the bank to sell you this
plan.......just do it yourself!

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