Paying mortgage bi-monthly or monthly (escrow, banks, reduce, payments)

[FW transplant]

I'm interested in increasing my mortgage payment. Should I pay an extra $1k once a month, or $500 twice a month? Thanks for your insight.

[flyonpa]

If Your Mortgage Company allow's it playing $500 2x a month will reduce your Total intrest paid, some. Your amound owed will go down because you are using $500 less for 14days or so, each month, then pay at the end of the month.

[HappyTexan]

Some banks charge for it. Then it's not worth it.

I just make my normal monthly payment and add additional principal each month.
And that costs me no extra.

[broadbill]

When you make payments before its due, the mortgage company holds those funds in escrow until the due date (and makes interest on it)....you are better off holding onto it yourself.

I suggest doing what happyTexan does....pay more at the end of the month

[HappyTexan]

Originally Posted by broadbill

When you make payments before its due, the mortgage company holds those funds in escrow until the due date (and makes interest on it)....you are better off holding onto it yourself.

I suggest doing what happyTexan does....pay more at the end of the month

I will add to double check each month that the extra money you send in for principal gets put towards principal and not escrow. I have seen that happen to me..fixed once I made a phone call. I just attribute that to sloppy data entry at the bank's end.