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Old 06-12-2009, 01:06 PM
 
Location: Philly
1,776 posts, read 3,542,139 times
Reputation: 821

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My bank offers automatic debit payments for my mortgage

Monthly (12)- No Fee if paid in the first part of the 15 day grace
Semi-Monthly (24) - $2-$4 fee per transaction
Bi-Weekly (26) $2-$4 fee per transaction
Weekly (52)- $2-$4 fee per transaction

They also offer one time payments online as well.

The thing is, I prefer writing checks, but I am very forgetful about bill paying, and sometimes I'll end up writing the check post the 15th of the month. So the auto deduction is very appealing to me, especially the bi-weekly. I get paid every other week, so if half of it comes out every pay, I'll avoid the significant hit at the beginning of the month, and evening out my available cash.

I'm not a fan of the fees, but I feel it's a good way to manage my mortgage payment.

What do you think?
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Old 06-12-2009, 02:27 PM
 
Location: Alaska
5,352 posts, read 15,852,154 times
Reputation: 3995
I personnally use the 12 month, no fee option. It works great since I don't have to remember to make the payment, just budget for it. I think the other options will save you interest, hence the attached fee. The bi-weekly option will definitely save you interest, but you can accomplish the same thing by making a one-time payment with your "extra" checks.
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Old 06-12-2009, 02:36 PM
 
Location: Philly
1,776 posts, read 3,542,139 times
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Quote:
Originally Posted by akck View Post
I personnally use the 12 month, no fee option. It works great since I don't have to remember to make the payment, just budget for it. I think the other options will save you interest, hence the attached fee. The bi-weekly option will definitely save you interest, but you can accomplish the same thing by making a one-time payment with your "extra" checks.

Yeah I doubt I will use my extra checks to pay a mortgage LOL.
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Old 06-12-2009, 02:40 PM
 
Location: Sacramento
2,568 posts, read 5,838,497 times
Reputation: 1905
I prefer to send the payment from my bank account with online bill pay. I schedule the payment once and it automatically sends it on time every month. If for whatever reason one month I want to send it a couple of days early or late I can change it easily. I can also send as many payments in a month as I want and I do not incur any fees.
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Old 06-12-2009, 02:59 PM
 
Location: Philly
1,776 posts, read 3,542,139 times
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Quote:
Originally Posted by suzie02 View Post
I prefer to send the payment from my bank account with online bill pay. I schedule the payment once and it automatically sends it on time every month. If for whatever reason one month I want to send it a couple of days early or late I can change it easily. I can also send as many payments in a month as I want and I do not incur any fees.
Yeah that's ultimately what I want to do, but i'm bad at sitting down and sending out payments. That's my problem, If it's automatic, it will be sent out, on pay day (so I know the money's there), and I won't incur late fees. But I don't want, in the long run, to not consider something and be making a bad financial investment.
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Old 06-12-2009, 03:07 PM
 
Location: Sacramento
2,568 posts, read 5,838,497 times
Reputation: 1905
Quote:
Originally Posted by IZthe411 View Post
Yeah that's ultimately what I want to do, but i'm bad at sitting down and sending out payments. That's my problem, If it's automatic, it will be sent out, on pay day (so I know the money's there), and I won't incur late fees. But I don't want, in the long run, to not consider something and be making a bad financial investment.
Online bill pay can be done automatically. Set it and forget it. You also have documentation of when the payment was sent so the mortgage company can't say you sent the payment late.
Not sure what you mean by bad financial investment.
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Old 06-12-2009, 03:12 PM
 
Location: Philly
1,776 posts, read 3,542,139 times
Reputation: 821
Quote:
Originally Posted by suzie02 View Post
Online bill pay can be done automatically. Set it and forget it. You also have documentation of when the payment was sent so the mortgage company can't say you sent the payment late.
Not sure what you mean by bad financial investment.
I guess the fees associated with the automatic payment- it's anywhere from $52 to $104 a year, depending on which option you select, I guess it can be better used elsewhere.
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Old 06-12-2009, 05:45 PM
 
16,301 posts, read 24,228,573 times
Reputation: 8261
Online billpay is your best option. Most banks don't charge for the first 40 payments each month, and you can set it up most anyway you want.

It is ridiculous for the bank to charge $2-4 per transaction for bi-monthly. It costs them literally nothing as it takes only a few microseconds for their computers to complete the transactions.
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Old 06-12-2009, 07:36 PM
 
Location: Philly
1,776 posts, read 3,542,139 times
Reputation: 821
Quote:
Originally Posted by Asheville Native View Post
Online billpay is your best option. Most banks don't charge for the first 40 payments each month, and you can set it up most anyway you want.

It is ridiculous for the bank to charge $2-4 per transaction for bi-monthly. It costs them literally nothing as it takes only a few microseconds for their computers to complete the transactions.
They are thirsty for anything they can get. They are going to nickel and dime you to death.
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Old 06-13-2009, 12:22 AM
 
Location: Long Branch
390 posts, read 1,346,099 times
Reputation: 110
You have to pay them to make payments? Which bank is this?

I agree with the others. Set up monthly auto bill pay and forget about it.

Any extra funds you have can go into an emergency fund or IRA.
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