My lender offers a program whereby I can get about 65,000 off over the life of the loan if I just pay every other week rather than monthly and I also need to add $30 into each payment. I thought that to be a nice deal. Is this a common offer for anyone with a mortgage or is it something special? I think we can swing it so I'm going to sign up for it.

I tend not to see mortgage lenders encourage people to pay off mortgages more quickly - but it's certainly recommended as a buyer.

I have only seen lenders encouraging to do so by the time when you need to refinance your current mortgage to prevent you go elsewhere to buy the new one.

I think this is a really good idea!
And when I finally get onto the property ladder Im hoping I get offered this type of deal as it would suit me very nicely!!

Maybe doing an online research you can find a similar deal, unless come our members have the answer to point you at.

Thanks for the tip MasterMind I will follow up a few lines of research via the internet and see what other valued members recommend!

I heard it said that if you make one extra payment on your loan per year then you will be able to pay it off in half the time. The problem for most of us is that we borrow as much as our current finances allow and there isn't any extra left over.

If paying bimonthly allows you to pay extra on the principle, then I would seriously consider doing it.

that's a great idea, carjam. but whether one is offered such a deal or not, i think it is always wise to do this to pay off mortgage right away.

I just reread the post and I have a question - will the extra $30 be what causes the loan to payoff sooner as opposed to the bimonthly payments?

Like it's already been stated - paying extra is always smart no matter how you make your regular payment.

I dont think that would be a bad idea to pay your mortgage every other week as long as you have the money for it.

If there is not a penalty involved in HOW you pay something, then I would think for most people it would be best to base it on the way the paychecks come in. Ours comes in monthly, so the budget has to be pretty settled, and we make payments on a monthly basis.

If you get paid every other week, then it might be easier to make a mortgage payment the same way.

I get paid every other week so the program made sense for me. I ended up spending about $300 upfront as some sort of fee but in the end it will be well worth it. I will be saving a massive amount of money and hardly feeling it...highly reccomend this program.

It's nice that banks are willing to work with borrowers on how they pay. Most people who get paid weekly or biweekly have a hard time keeping a budget when they have that big payment every fourth week.

I have never heard of that way but it seems like another good approach on how to pay of the mortgage.

My oldest and her husband just bought their first home. They shopped around like crazy for a good rate and no early payoff penalty. That was the tough thing to find....but without it, I told them to walk. They listened. Now they add money to the principal every chance they get.

These companies make their money off the interest. They don't want it paid off early!