I Get a fair number of questions about bi-weekly payments. A bi-weekly payment plan is really simple. Instead of paying your mortgage payment once a month, you pay half of it every two weeks. Most months, we only collect two half payments – so nothing is different. We take those two half payments and we apply one payment – just like everyone else. However, twice a year, we end up collecting 3 payments (because there are 26 half weeks a year and 26 divided by 2 = 13 payments). So, we apply that extra half of a payment on those months. Because you are paying that extra payment each year – you pay your loan off faster.
But, it’s important to know that there is nothing magical about a bi-weekly payment. Again, it only shaves interest and time off of your loan because you are paying extra. I absolutely detest those companies out there that market a bi-weekly option to new loans. These firms collect the payment (plus a fee) from the client and then they make that payment to the mortgage servicer. The client could do this themselves.
There are a bunch of other easy payment options that have the same effect as a bi-weekly as well. Check out my little chart here. If you make one extra payment a year – you get essentially the same interest and time savings as a bi-weekly. In fact, if you make your one extra payment at the beginning of each year – you save even more than if you paid bi-weekly. Or, you can add 1/12 to each payment (if your payment is $1,000 – just add $1,000/12 = $83 and pay $1,083 each month) and you’ll get an almost identical interest and time savings as if you paid bi-weekly.
Patrick Mallon
Federated Lending has great customer…
Federated Lending has great customer service, a very knowledgeable staff, and made re-financing an effortless experience.
Mike Pawlikowski
Federated Lending comes through again
Federated Lending comes through again. Tom K. and Federated Lending team helped me through the process of getting my original mortgage and now again with the refinance. They made the process very easy and I am extremely happy with the end result. I would strongly recommend if your looking for a mortgage or refinance that you reach out to the Federated Lending Team.
Megan Detwiler
We were happy with our experience. Initially there was a step missed that caused a slight delay, but we couldn’t be upset because it ended up getting us a lower rate overall. We were able to sign the documents in the comfort of our own home which was super convenient and appreciated. Would recommend!
Kristen Katzianer
Easy process from start to finish
Easy process from start to finish. The underwriter should make more money.
Jacob Desperak
Wonderful and easy experience!
My wife and I had a very good experience with Fedlend thanks to Andy and Kathy. We couldn’t be more thankful for all the help and guidance we received along the way. Would definitely recommend to all home buyers, as we will use Fedlend for our next purchase or refinance.
Shawn Cannon
Second time working with Vince
Second time working with Vince. Have had nothing but great experiences. Highly recommend!!
Katie Novak
Federated Lending was a great mortgage…
Federated Lending was a great mortgage company to work with! We were able to ask questions and get immediate answers.
Bart Cerami
Andrew Larson and Federated Lending made refinancing my home simple, and saved me a lot of money in the process. And Andy continued to assist me after the closing when I had a question regarding my local tax payment. I have already recommended him to several of my friends and will continue to do so. Thanks Andy!!
Elaine Punchello
I've trusted Federated Lending multiple…
I've trusted Federated Lending multiple times for my home mortgages. They make what can be a difficult process easy to get through. I've never had a delay in a settlement because of my mortgage, which is a frequent issue with other lenders. I'll continue to use them and recommend them. Thanks!
Jorge Figueroa
Federated Lending Is Fantastic and Honest
This was such an easy transaction. What is probably the most stressful thing to do Andy and his Team made this absolutely seamless. Everything was done perfectly and right on time. Zero issues at the closing table and it all went exactly as it was explained. I was prepared for so many things to be a push up and there was none of it. NONE! I cannot say enough ...
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