Article re changing a mortgage payment schedule

The_Doctor_3

http://www.irishtimes.com/newspaper/pricewatch/2011/0404/1224293731588.html?via=mr

I have to be honest about this article. Either I've been slapped hard this morning by the stupid stick or I am just being a bit thick, but is the bottom line of this Mortgage article a bit of smoke and mirrors?

Paying an extra months mortgage payment is clearly a simple concept but splitting the mortgage payment into fortnightly payments is a concept I can't fathom - especially if you pay your mortgage on the 1st of the month.

Can someone see another angle to this? Help!!

lincoln-potter

My take on it is that since interest is worked out daily its suggesting that paying twice monthly will cut the amount of interest you will have to pay.

However if your first payment is less (as a result of having to make a 2nd payment) then in my eyes you would always be half a month behind where you were......

The_Doctor_3

I completely agree - I'm still waiting for the lightbulb moment with this article.

Anyway I'll interpret is an encouragement to keep chipping away with the overpayments.
:T