Bi-weekly mortgage payment plans
Bi-weekly mortgage savings plans

So you got the notice in the mail that for $150 you can sign up for a mortgage reduction plan or mortgage savings plan.  They say they can CUT UP TO 7 YEARS OFF YOUR 30 YEAR MORTGAGE.   The plan most likely calls for you to send in half your mortgage payment every two weeks.

THIS PLAN WORKS!!!!!  If you break down the plan it works like this.  What you are actually doing is making 13 payments a year.  There are 52 weeks a year.  So if you send in a payment every 2 weeks you are sending in 26 payments.  So if you are sending in 26 payments every 2 weeks (26 divided by 2=13 payments) it is 13 full payments.

No, you are not sending it directly to the mortgage company usually.  What the company that is promoting this is doing is having you send in the first ½ payment then holding it until you send in the second ½ payment.  Then the company sends it in to your mortgage company.  For this there is a $150 upfront fee and usually a $3 charge per payment.  So it cost you sometimes $75 a year.  Check out the charges.

Is it a good deal?  Yes if you do not have the discipline to do it yourself.  It pays off your mortgage quicker.

BUT YOU CAN DO IT YOURSELF AND AT NO COST!  If you just send in an extra 1/12 of a payment each month you will do the same thing.  Let´s say your mortgage is $1800 a month.  If you sent in 1/12 ($150.00) of your mortgage payment added to your regular payment. ($1950) you should cut off about 7 ½ years.  So instead of a 30 year fixed mortgage you should be paid off in about 22 ½ years.  And you did not have to pay a middleman.