Gmac Mortgage Payment
GMAC(my home mortgage co) just "offered" me a deal on my mortgage payments.
They will set me up on a bi-weekly program. This way I'll pay 26 payments a
year, pay off the loan 5 years sooner and save thousands. They want $300 for
the setup fee. My question is: Couldn't I send in bi-weekly payments anyway?
Or, what if I just sent them the (2 extra payments divided by 12) money in
with my normal payment? Would that be the same thing minus the setup fee?
Does anyone have any experience making extra payments on a mortgage?
All you have to do every month is include a separate check (it could be for any
amount that you are comfortable with) and mark the check "Apply towards
principal". That would accomplish the same thing without paying a setup fee.
Also, if for some reason you cannot
make the bi-monthly payment you will not be penalized. Why pay $300 for
a more stingent payment plan when you can do it yourself. If you want,
ask GMAC this same question. Give them a call
and ask them what you get for $300 that you can't do yourself.