My mortgage company thinks I'm dumb.

Started Jun 28, 2013 | Discussions thread
Ubilam
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In reply to BorisK1, Jun 30, 2013

BorisK1 wrote:

I keep getting this "offer to save money" from my mortgage company - an email once a week, like clockwork.

Their "generous" offer is to split my monthly payment in two, and pay it byweekly. That would mean I'd pay about 1/13th more per year (a month is longer than 4 weeks, so I'd make 26 half-payments). The extra money would pay off the mortgage a little faster, and I'd save on interest.

For this "service", they want to charge me a $3 "administrative fee" per each payment.

In my case, adding up those $3 fees works out to about 50% of what I'd save in interest.

If I simply increased my monthly payment by 1/13, I'd pay and save just as much, but without losing half of the savings to an "administrative fee".

Now, this company trusted that I'd be able to pay the mortgage back to them. Why do they think I'm so dumb as to not be able to do this simple arithmetic? And if they do think I'm so dumb, why did they trust me with their money to begin with?

I don't want to block the emails from my mortgage company, but this is very annoying.

Now many offer bi-weekly and even weekly payments! Whoo-hoo!

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