It sounds like they only apply the payment once a year eventhough you
make a bi-weekly payment. As an option, you could make 13 payments in
a year (make it in Janaury if you can to get the most impact of the
interest savings) and save during the rest of the year (transfer into
savings) for the next January payment.

If they pay interest on the money, it might somewhat offset the $52 but
probably not by very much. The $52 'migh' (I don't know) be deductible
from your income taxes....

Just some random thoughts which come to mind.

You would save a little money over the long run by sending them a check
each time that "extra" half a payment is left over. You'll reduce the
interest on that much principle for about 6 months. Over the life of
the loan, that will add up.

Frank A Spina wrote:
- quote -

I figured the best way would be to set up an holding account (ms money only
account). When I read the print of countrywide statement, this is what they
do. They collect the payment every other week, pay the total mortage+escrow
at the end of the month. By the end of the year they have a amount left in
the account for principle payment equal to my mortage payment minus any
fees.

They do charge $2 fee for each bi-weekly transaction. Or $52 a year. For
that much I could open a checking account make the transfers myself, set
this account for the monthly as an eft at no charge. At the end of the year,
what's left is applied to principle.

I have not closed on the loan for this new house , so I don't know what they
offer me. I will model that decision when I get to it.





"Cal Learner-- MVP" <via_newsgroup[at]please.tnx> wrote in message
news:v9um01p7g2feq2g00n99gikf4s7hmbg5ck[at]4ax.com...
- quote -

In microsoft.public.money, Frank A Spina wrote:

- quote -

There are two ways that come to mind. One would be to treat the
mortgage as a virtual refi. Enter the payments and the duration and
the remaining principal. Let Money compute the result. Treat the
Money numbers regarding interest as approximations. Use the form
1098 data as your actual tax info if you itemize.
http://umpmfaq.info/faqdb.php?q=86 discusses refi.

The other way would be more exact. You would create an account to
which you would schedule a regular transfer of money from checking
to that account biweekly. Then from that account, you would schedule
the mortgage payment from the bank, as well as the extra principal
payments. This would model the activity. One could enter any fees
into that account as expenses. If you want to try that one, it would
be good for us to develop the technique into an algorithm for others
who might be doing a similar thing in the future.



- quote -

Thanks,
Countrywide does this for free, I do not think there is a fee.


"Cal Learner-- MVP" <via_newsgroup[at]please.tnx> wrote in message
news:6bbl019rvhaaik8v0la68440jfhjbtv6jl[at]4ax.com...
- quote -

In microsoft.public.money, Cal Learner-- MVP wrote:

- quote -

Here are descriptions of the services that I was referring to:

http://moneycentral.msn.com/content/...41.asp?Printer
http://www.realestateabc.com/loanguide/biweekly.htm

In microsoft.public.money, Frank A Spina wrote:

- quote -

Somebody else will be able to give you a better description of your
options.

Did you refinance your mortgage, or did you sign up for one or those
services that takes your money every two weeks, and pays most of it
to your bank on your monthly schedule plus an extra principal
payment at intervals? If the latter, then it will be tricky
describing exactly what is happening, but it is possible if you
understand what is happening.

I guess I can't change an account once it is added can I. For example if I
switch to biweekly from once a month.



"Cal Learner-- MVP" <via_newsgroup[at]please.tnx> wrote in message
news:r07l01hinah969o3rqlnhqb97qc9fvd2lr[at]4ax.com...
- quote -

In microsoft.public.money, Frank A Spina wrote:

- quote -

Add a New Account
Mortgage.

Paid How Often: Every Two Weeks.

It is usually better to leave the interest rate blank, and enter the
payment data and period. That is because there can be small
differences in how the rate is calculated.

I have a conventional 30 year loan. Interest acrued monthly. Is it possible
to setup a biweekly recurring payment that accuratly tracks taxes and
interest. Basically your making 26 , 1/2 monthly payment rather than 12 full
monthly payments. Making what amount to 1 extra principle payment in the
amount of your standard mortage payment.