How to...?
Dec 29th 2012, 5:27 pm
#1
BE Forum Addict
Thread Starter
Joined: Jul 2008
Location: East Bay Area
Posts: 2,192
How to...?
G'day all...
So we finally moved into our own home few weeks ago! Now that we have signed up for a monthly mortgage payment of 2,200 a month for the next 30 years (grrrr..), we would like to take every step to shorten that duration. One of them is paying little bit more than 2,200 a month. Another strategy is to pay every 2 weeks instead of monthly.
When I started to research more on the later, I was shocked to know that Citibank does not support this payment system. They however have 'out sourced' bi-weekly payment service to 'affiliates'. I am fine with that, expect for the fact that the affiliates will charge $3 per payment...what the frak?
I then tried to think of alternatives...1. processing payments via citibank online adding my wells fargo account. 2. recurring automated payments from wells fargo to mortgage account.
The issue is this. Let's say my payments are due on the 1st of the month. I have to pay the entire 2200 that day so if I were to split 2200 into biweekly, technically I will be behind on the loan i.e. if I were to pay 1100 on 1st and 1100 on 14th then I would be behind.
I just wanted to check in to see if anyone has any suggestions? thanks in advance.
So we finally moved into our own home few weeks ago! Now that we have signed up for a monthly mortgage payment of 2,200 a month for the next 30 years (grrrr..), we would like to take every step to shorten that duration. One of them is paying little bit more than 2,200 a month. Another strategy is to pay every 2 weeks instead of monthly.
When I started to research more on the later, I was shocked to know that Citibank does not support this payment system. They however have 'out sourced' bi-weekly payment service to 'affiliates'. I am fine with that, expect for the fact that the affiliates will charge $3 per payment...what the frak?
I then tried to think of alternatives...1. processing payments via citibank online adding my wells fargo account. 2. recurring automated payments from wells fargo to mortgage account.
The issue is this. Let's say my payments are due on the 1st of the month. I have to pay the entire 2200 that day so if I were to split 2200 into biweekly, technically I will be behind on the loan i.e. if I were to pay 1100 on 1st and 1100 on 14th then I would be behind.
I just wanted to check in to see if anyone has any suggestions? thanks in advance.
Dec 29th 2012, 5:30 pm
#2
In the pink
Joined: Oct 2006
Location: USA
Posts: 3,324
Re: How to...?
G'day all...
So we finally moved into our own home few weeks ago! Now that we have signed up for a monthly mortgage payment of 2,200 a month for the next 30 years (grrrr..), we would like to take every step to shorten that duration. One of them is paying little bit more than 2,200 a month. Another strategy is to pay every 2 weeks instead of monthly.
When I started to research more on the later, I was shocked to know that Citibank does not support this payment system. They however have 'out sourced' bi-weekly payment service to 'affiliates'. I am fine with that, expect for the fact that the affiliates will charge $3 per payment...what the frak?
I then tried to think of alternatives...1. processing payments via citibank online adding my wells fargo account. 2. recurring automated payments from wells fargo to mortgage account.
The issue is this. Let's say my payments are due on the 1st of the month. I have to pay the entire 2200 that day so if I were to split 2200 into biweekly, technically I will be behind on the loan i.e. if I were to pay 1100 on 1st and 1100 on 14th then I would be behind.
I just wanted to check in to see if anyone has any suggestions? thanks in advance.
So we finally moved into our own home few weeks ago! Now that we have signed up for a monthly mortgage payment of 2,200 a month for the next 30 years (grrrr..), we would like to take every step to shorten that duration. One of them is paying little bit more than 2,200 a month. Another strategy is to pay every 2 weeks instead of monthly.
When I started to research more on the later, I was shocked to know that Citibank does not support this payment system. They however have 'out sourced' bi-weekly payment service to 'affiliates'. I am fine with that, expect for the fact that the affiliates will charge $3 per payment...what the frak?
I then tried to think of alternatives...1. processing payments via citibank online adding my wells fargo account. 2. recurring automated payments from wells fargo to mortgage account.
The issue is this. Let's say my payments are due on the 1st of the month. I have to pay the entire 2200 that day so if I were to split 2200 into biweekly, technically I will be behind on the loan i.e. if I were to pay 1100 on 1st and 1100 on 14th then I would be behind.
I just wanted to check in to see if anyone has any suggestions? thanks in advance.
http://www.bankrate.com/finance/mort...-big-cash.aspx
Last edited by Mallory; Dec 29th 2012 at 5:40 pm.
Dec 29th 2012, 5:37 pm
#3
Septicity
Joined: May 2004
Posts: 23,762
Re: How to...?
G'day all...
So we finally moved into our own home few weeks ago! Now that we have signed up for a monthly mortgage payment of 2,200 a month for the next 30 years (grrrr..), we would like to take every step to shorten that duration. One of them is paying little bit more than 2,200 a month. Another strategy is to pay every 2 weeks instead of monthly.
When I started to research more on the later, I was shocked to know that Citibank does not support this payment system. They however have 'out sourced' bi-weekly payment service to 'affiliates'. I am fine with that, expect for the fact that the affiliates will charge $3 per payment...what the frak?
I then tried to think of alternatives...1. processing payments via citibank online adding my wells fargo account. 2. recurring automated payments from wells fargo to mortgage account.
The issue is this. Let's say my payments are due on the 1st of the month. I have to pay the entire 2200 that day so if I were to split 2200 into biweekly, technically I will be behind on the loan i.e. if I were to pay 1100 on 1st and 1100 on 14th then I would be behind.
I just wanted to check in to see if anyone has any suggestions? thanks in advance.
So we finally moved into our own home few weeks ago! Now that we have signed up for a monthly mortgage payment of 2,200 a month for the next 30 years (grrrr..), we would like to take every step to shorten that duration. One of them is paying little bit more than 2,200 a month. Another strategy is to pay every 2 weeks instead of monthly.
When I started to research more on the later, I was shocked to know that Citibank does not support this payment system. They however have 'out sourced' bi-weekly payment service to 'affiliates'. I am fine with that, expect for the fact that the affiliates will charge $3 per payment...what the frak?
I then tried to think of alternatives...1. processing payments via citibank online adding my wells fargo account. 2. recurring automated payments from wells fargo to mortgage account.
The issue is this. Let's say my payments are due on the 1st of the month. I have to pay the entire 2200 that day so if I were to split 2200 into biweekly, technically I will be behind on the loan i.e. if I were to pay 1100 on 1st and 1100 on 14th then I would be behind.
I just wanted to check in to see if anyone has any suggestions? thanks in advance.
If you want to pay it down quicker, mail a check to the payment processor periodically with a memo line stating: To be applied to loan principle ONLY.
Dec 30th 2012, 12:45 am
#4
.
Joined: Nov 2002
Location: Where bad things rarely happen in movies
Posts: 8,933
Re: How to...?
And then make sure they do....I got to know an Indian chappie on the citibank customer service line quite well. Oh, what fun we had, spending what seemed like hours chatting about the way my additional payments were to be applied. He insisted I had to apply some of the additional to interest, I insisted I didn't. In the end, I had to pull rank and his supervisor somewhat begrudgingly agreed with me...they must have enjoyed our little chats, because every few months they tried to revert to their old ways, just so I had to call them again. Maybe they liked my accent or something.....
Dec 30th 2012, 1:33 am
#5
BE Irregular
Joined: Jan 2004
Location: Tampa Bay Florida
Posts: 4,849
Re: How to...?
My lender - Suntrust - gives the option to make extra monthly payments. ie monthly due amount is 634.23, I was offered the option, and pay a round 650 by direct debit, or whatever they call it.
Dec 30th 2012, 1:48 am
#6
BE Forum Addict
Thread Starter
Joined: Jul 2008
Location: East Bay Area
Posts: 2,192
Re: How to...?
Thanks guys.....I did a bit of research also. Mathematically paying 1/12th of monthly payment as extra payment to the normal monthly mortgage yields almost the same savings as doing a biweekly pay. I mean it makes sense but now that I know mathematically there is no difference, I wont be paying jack ($3 for each draft). Besides it also seems that the affiliates who charge 3 bucks for their service actually don't remit the funds to Citibank until end of month. So what wa*kers use client money for 14 days!
Thanks guys.
Thanks guys.
