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why cts blacklist any company any idea?
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Unless your mortgage company allows to apply to principle, it would just sit in the escrow and would apply on monthly schedule. Better check with your mortgager, if they do allow to apply to principle it will save you thousands over the years.
Generally speaking that process means you make an extra payment each year. If you pay monthly, you make 12 monthly payments. Some people suggest that you should pay a half payment every two weeks, which results in essentially 13 monthly payments each year. Therefore, you will pay your mortgage off faster and a bit less interest, but has worse cash flow. I never saw the appeal, but maybe if your rate is high and you can afford it.
Otherwise benefit limits to what you said, 2 extra payments for the year
SPM1 - in my experience, once you have paid interest, additional payments made go against principal not in escrow. Maybe some mortgages are different, but I think all of my mortgages took excess payments (which I don't usually make) against principal. That said, the interest savings from this don't primarily come from paying some small principal two weeks early, but from essentially making an extra payment each year because 52 / 2 = 26.
FTI- you are partially correct and partially wrong as well. Additional payments over interest go to principal, yes. However thats usually like this, pay 1 time a month, delta over P&I goes to principal. But here scenario is different, person instead of paying once a month is splitting the same every fortnight. And if that is applied to your loan when paid, leads to significant interest savings. But mortgagers don’t apply them, they wait and apply once a month. Thus there’s no gain for the person. That’s why I said to check, how it’s treated. Now coming to the scenario you mentioned, yes you are right, in that case person is paying nothing early or more that’s applied to principal but the 2 additional payments/yr. And that’s getting applied to principal leading to some gains. But in this scenario interest savings are much less as opposed to first scenario I mentioned. I hope I was clear and did not cause any further confusion :-)