Comments on: A “Service” You Don’t Need!

By: MyOwnMillions

MyOwnMillions — Mon, 09 Apr 2007 17:23:01 +0000

One thing I would add is that just the extra payment at the end of the year will not yield the same effect of paying earlier (by doubling the frequency) + an extra payment. So pay more frequently (every 2 weeks), or even as soon as you have the money if you want to save on interest. My Own Millions Blog

By: EMF

EMF — Mon, 09 Apr 2007 17:21:44 +0000

If you are paid bi-weekly, then about every 6 months you have 3 paydays instead of 2. So on those months send in an additional half-payment.

Compared to sending in an extra 1/12 payment each month, it takes a bit more effort but makes your cash flow more even.

This is effectively what Jeremy in reply #2 above does, but what you can do yourself if you don’t have his option.

By: Chris Hynes

Chris Hynes — Mon, 09 Apr 2007 16:40:46 +0000

I’ve gotten the same letter… WTF are they thinking? If they paid me, it might be attractive… but if it’s something I can do for free, why pay?

By: Rob

Rob — Mon, 09 Apr 2007 16:38:28 +0000

Charles should reply with a letter that says if they pay him $295 he’ll agree to make his regular monthly payments when they’re due. And he could put in big letters “WHAT ARE YOU WAITING FOR?”

By: Rob

Rob — Mon, 09 Apr 2007 16:36:05 +0000

Or you could just send an extra $100 with your regular monthly payment. There are many ways to get the same effect. JLP is right – the bank here is basically charging you a rediculously high fee for a phantom service that does what you most likely have the right to do anyway for free. This is one of the most eggregious scams I have heard of in a while.

By: JLP

JLP — Mon, 09 Apr 2007 16:05:41 +0000

CR,

I had a check kicked back to me because I mistakenly paid a smaller amount than what I was supposed to pay (a tabulation error on my part).

By: Customers Revenge

Customers Revenge — Mon, 09 Apr 2007 16:00:45 +0000

I don’t believe that a bank will not let you pay at whatever frequency you want! You should always pay your mortgage to coincide with your paycheck. If you get paid every two weeks, make the mortgage payment every two weeks the day after payday. If you get paid per week, same thing but weekly. If you get paid per month, same thing again but monthly.

By: Jeremy

Jeremy — Mon, 09 Apr 2007 14:33:06 +0000

Our lender sent us one of those types of letters a few months after we bought our house. I read it and just laughed, they too wanted around 300 bucks just to enroll.

An even better idea if you don’t want to just send in one payment extra per year, have a bank account with your lender if you can. One of our checking accounts is with the same bank our mortgage is through and the monthly mortgage check payment is taken away automatically. But, we set up an automatic and recurring transfer once a month from the checking to mortgage equal to about 1/12th of the yearly mortgage payment.

Viola, an extra payment per year without their silly fees. The best part is that this method is very flexible as well, we can start it, stop it or change the payment at any time. No need to be bound by their terms.

By: JOhn BoB

JOhn BoB — Mon, 09 Apr 2007 14:26:24 +0000

The savings is a “Huge return on your investment!” Wow! If you do it by yourself it is an INFINITE return on your investment. Last time I checked, Infinite>Huge

What a scam