I said I would do it before we started looking for a house.
Then, I said we would do it when we bought the house.
Then, I said I would do it once Baby Warrior was born.
Then, I said we would do it when we paid off our debt.
In the 14 months we have owned our home, I kept putting it off.
It was bi-weekly mortgage payments.
Saving $19k+ w/ a 15 Minute Phone Call
Over at The Simple Dollar, I read Trent about Trent referencing this article at Add Vodka titled How Much Money Did Changing Our Mortgage Payment Frequency Save Us?
This was the final kick in the “arse” I needed to set the bi-weekly mortgage payments up.
J & Daisy over at Add Vodka are saving over $20k and 4 years of mortgage payments on the back end. Applause my new fellow mortgage killers. Applause.
After reading their article, I was kind of ashamed that I had the knowledge and ability to set this up, but I kept putting it off.
I made a call to our lender (Nationstar Mortgage) who sent me over to the Western Union Equity Accelerator Program department. I will note the “negative” numbers first. There’s a $295 initial fee for setting up the program and $5/monthly fee as well. Unfortunately, it is what it is and I just moved forward. The large initial fee will actually be deducted from my payments the first time I pay three payments in a month.
Now that the negative aspect is out of the way, let me get to the good numbers.
By setting up bi-weekly mortgage payments of $475, we will…
- Save up to $19,701 in interest over the life of our loan
- Build up to $13,318.00 more in equity in 10 years
- Reduce our loan term by up to 5 years and 1 month