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Bi-Weekly Mobile Home Mortgage
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Did You Know?
Making one extra mortgage payment a year will knock years off your mortgage and save you tens of thousands of dollars over the life of the loan.
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If you search for "bi-weekly mortgage" with an Internet search engine, you will be overwhelmed by the number of companies offering "Bi-weekly Mortgage Reduction Services" or "Bi-weekly Savings Programs." Beware, you are entering dangerous waters.
MobileHomeLoan.biz offers a true bi-weekly mortgage reduction plan that can accutually benefit you in the qualifying for your loan. Our program known as the Equity Accelerator program is available in most states for our in park mobile home customers.
Unlike some of the advertized bi-weekly mortgage reduction programs, our service is a free program provided at the inception of your manufactured In-Park home loan. By choosing A Mobile Home Loan Equity Accelerator, or bi-weekly loan payment plan, we will reduce your interest rate by .25% just for trying it out. There are no fees or service charges. It is simply a service provided by your new lender.
Beware of Non-Lender Sponsored Bi-Weekly Mortgage Reduction Services and Savings Programs
These "Reduction Services" and "Savings Programs" are charging you fees to "make a bi-weekly mortgage payment" for you. The enticement is that they will save you an impressive amount of money on your mortgage and reduce the number of years you pay on your mortgage. These statements are very true...however, much of your savings is negated by fees and service charges.
The enticement is that they will make bi-weekly mortgage payments for you and save you years off your loan.
The real story is that they are indeed taking years off your loan, but at a high cost to the consumer. They are not actually making bi-weekly payments on your mortgage. They are making bi-weekly deductions from your bank account. These funds are placed into an account from which your monthly mortgage payment is made (which only takes 24 deductions - but during the course of a year 26 deductions will be made from your account). With the extra 2 deductions, the "Service" makes an additional mortgage payment. In other words rather than making 12 mortgage payments, 13 payments are made.
The enticement is that they are providing a special service to you that would either not be possible for you to get on your own or that you won't have the time or discipline to make it happen.
The real story is that when MobileHomeLoan.biz arranges for your bi-weekly payment program it is lender sponsored with no 3rd party interference or fees.Yes, you yourself can easily make an additional mortgage payment each year. But if you either lack the disipline or just want an easy way to do this, our lender sponsored program can make these deductions with no fees or service charges.
It is our experience that most consumers want to pay off their home quicker but don't want to think about it month in and month out. Our Equity Accelerator is done seamless and without thinking about it. You will have made an additional payment each year. And you won't have to pay any fees to a "Service".
MobileHomeLoan.biz is offering this only to in-park mobile home owners at the current time. Once we have issued you an approval for your mobile home in park loan, tell your account executive that now you want the "Equity Accelerator" and we will reduce your interest rate by .25%
The Savings
First, the facts: on a $100,000 30-year mortgage at 6.5%, you'll pay $127,544 in interest, plus the $100,000 principal, for a total of $227,544. Paying one-half of your regular monthly mortgage every two weeks will result in interest of $97,215, a savings of $30,329. You'd have to earn over $42,000 before taxes to net that much money.
The larger your mortgage, the more dramatic the savings. On a $200,000 mortgage, you'll pay $255,088 in interest, plus the $200,000 principal, for a total of $455,088. Paying one-half your regular monthly mortgage amount every two weeks will result in interest of $194,430, a savings of $60,658. You'd have to earn at least $85,000 before taxes to net that much money.
Most mortgages can be pre-paid without penalty, but some mortgages in the secondary market (where many people with questionable credit have to go for a mortgage) have a penalty for pre-payment. Check with MobileHomeLoan.biz.
You can achieve the benefits of pre-paying your mortgage without converting to a special type of mortgage or paying a fee. All it requires is discipline.
Know What To Look For
In order to build equity in your home more quickly, you must have a lender that will immediately credit each 1/2 monthly payment upon receipt. MobileHomeLoan.biz' Equity Accelerator credits this payment immediately. If your lender waits until the second payment has been received before crediting your loan, you'll never see the benefits.
Many companies will offer to "convert" your mortgage to a bi-weekly mortgage payment plan for a fee. They'll automatically withdraw the payments from your bank account every two weeks. Read the small print on such plans. Many of them only pay your lender once a month, so the extra payment doesn't get applied to your loan until the end of the year. In the meantime, the company has been earning interest on your money as well as charging you a sometimes outrageous fee.
Bankrate's Bi-Weekly Mortgage Payment Calculator
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