Bi-Weekly payment question

[LSU25]

My husband and I have refinanced and changed our payment cycle to bi-weekly payments. I would ask him, but he isn't home right now so after searching the internet and not being able to come up with an answer, I come to my trusted Budget Board

If I want to add extra money towards the repayment does it make a difference if I do it the first payment of the month or the second?

 

[Cheshire Figment]

It does not really matter. Just make sure that you indicate that the additional payment is "principal only".

Personally since my mortgage is held by the same bank where I have my checking accounts, I wait until the day after the payment posts to the mortgage and then transfer a few hundred dollars additional so each month I am paying $1,000 plus declining interest.

 

[ilovemk76]

My husband and I have refinanced and changed our payment cycle to bi-weekly payments. I would ask him, but he isn't home right now so after searching the internet and not being able to come up with an answer, I come to my trusted Budget Board

If I want to add extra money towards the repayment does it make a difference if I do it the first payment of the month or the second?

The first payment would be better, since it is sooner and thus cuts off more interest in the long run. Either is a good choice over not doing it. Make sure you not it is a principal payment.

 

[disneychrista]

The sooner you make the extra payments the less interest is paid.

As remember that bi-weekly payments means every two weeks, not just twice a month. So every 6 months or so you will be making a 3rd payment, for a total of 26 bi-weekly payments vs 24 semi-monthly.