We recently received an email from Citimortgage, urging us to enroll in its “BiWeekly Advantage Plan.”
After you sign up, the plan automatically withdraws half of your regular monthly mortgage payment every 14 days for a total of 26 drafts a year.
It’s the equivalent of making 13 monthly mortgage payments a year, instead of 12.
Now paying your mortgage off more quickly is usually a good thing that will literally save tens of thousands of dollars in interest costs.
But — and you knew there had to be a but — signing up for bi-weekly payments through Citimortgage is a costly proposition.
It costs $375 to enroll, plus a $1.50 transaction fee with each draft – or another $39 a year.
We can’t imagine why anyone would want to do that when you can simply add as much extra money as you’d like to your regular monthly check.
Any amount above the required minimum payment will be automatically applied to your balance at absolutely no cost to you.
In fact, here are three free ways to pay your mortgage faster.
Charging fees to pay your mortgage is just another stupid bank trick.