Is this correct?

gorgeousgeorge

Have seen this in a facebook I'm a member of, wondering if this is correct?

Hi guys, if you take your monthly mortgage payment and divide it by 4 and pay weekly on a 25 year mortgage this will take up to 11 years of or is you take your payment and divide it by 2 and pay every 2 weeks this will take up to 7 years of a 25 year mortgage, this is a wee tip that i use for my own mortgage along with sharing it with my clients to pay it of quicker putting thousands back into their pocket

anselld

What do you think? ... and it isn't even April 1 yet!

It will take some time off because paying quarter of the monthly payment every week is an overpayment since there are actually 4 and 1/3 weeks in a month (52/12).

Fruit_and_Nut_Case

gorgeousgeorge wrote: »

Have seen this in a facebook I'm a member of, wondering if this is correct?

Hi guys, if you take your monthly mortgage payment and divide it by 4 and pay weekly on a 25 year mortgage this will take up to 11 years of or is you take your payment and divide it by 2 and pay every 2 weeks this will take up to 7 years of a 25 year mortgage, this is a wee tip that i use for my own mortgage along with sharing it with my clients to pay it of quicker putting thousands back into their pocket

Looks like gibberish to me. Did you copy that or did you write it from memory?

gorgeousgeorge

Well I don't know otherwise I wouldn't have asked on here! I have no Knowledge about mortgages, I had seen the post, the poster has said that this is what she is doing . I was going to tell my children who have mortgages about this , that's the only reason I asked

gorgeousgeorge

I copied it from the post that I saw , bloody hell only asking for advise as if this is correct

ACG

It probably depends on when you pay your mortgage and if interest is charged daily or not.

If you pay on the first and interest is charged daily then im not sure how that could work.

If you pay at the end of the month but then decide to pay it weekly you are effectively paying off all of your months mortgage payment sooner than the end of the month, but you would be better off just paying it at the beginning of the month in full...

Landofwood

It's not possible. Your commit to paying your mortgage monthly, and you will be expected to pay your full monthly charge regardless of how many "weekly" payments you make.

Making regular OVERpayments will reduce the amount of interest you pay, but you can't just change your monthly payment into a weekly payment.

anselld

gorgeousgeorge wrote: »

I copied it from the post that I saw , bloody hell only asking for advise as if this is correct

Both those options amount to an 8.33% overpayment due to there not being four weeks in month.

According to this ...
http://www.moneysavingexpert.com/mortgages/mortgage-overpayment-calculator

... that results in a 2 year reduction in a 25y 3% mortgage, more as the mortgage rate increases.

... but it isn't money for nothing, it is just overpaying your mortgage.

gorgeousgeorge

Thank you both for your replies
I just wanted to know if this was possible, as I know that you can get some good advise on here

getmore4less

just google: mortgage myths weekly


you can do this for anything you read, if it is common rubbish being spouted it will be out there

gorgeousgeorge

I'm sure I can 'Google ' it ... Just thought I would ask on here 1st that's all.