Simple interest bi-weekly mortgages are a rip-off.

How not to buy a brick in a box off the back of a truck.
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Mycroft
Posts: 167
Joined: Wed Jun 23, 2004 4:38 pm

Simple interest bi-weekly mortgages are a rip-off.

Post by Mycroft »

Just so you all know.

You really don't see these things being pushed so much in today's market because lower interest rates make the apparant savings of bi-weekly payments go away, but they will probably come back as interest rates rise in the future.

Just remember, the bi-weekly payment plan is just a trick to get you to pay more against your mortgage every month than you think you are. It's not a bad thing to save money this way, but if it is your plan you will do better every time just by taking a mortgage with a shorter term. These bi-weekly products are just a vehicle to get consumers to accept non-conforming loans at higher rates.

Oh yeah, avoid Primerica like the plague.