Many lenders will offer the biweekly payment plan to their borrowers. All you have to do is call the lender's customer service department—even after the closing—and request a change in payment plan.
If the lender does not provide for a biweekly payment plan, you can accomplish these same results by merely paying an extra monthly payment each year.
However, mortgage loan borrowers should generally avoid any biweekly plans offered by an outside, independent service. There are companies who will set-up a biweekly payment plan for homeowners. But they are unnecessary, expensive and dangerous.
These biweekly service companies are unnecessary because they simply set up a payment plan by which the borrower pays an extra monthly payment each year. This is a payment plan that borrowers can set up themselves.
These companies normally operate by first obtaining a two-month deposit (sometimes more) from the borrower. The borrower then makes biweekly payment to the company. The company, however, simply makes monthly payment to the lender—with an extra month's payment each year.
Meanwhile, the service company will usually charge the borrower an application and maintenance fee (in addition to the deposit) and reap the interest earnings from the deposit accounts.
They are also very risky because if the company goes under—as many have already done—participating borrowers can lose all of their deposits and throws their mortgage payments (and credit record) into confusion.
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