Mortgages payment strategies

[Laurent Fontaine]

Thank you in advance..... Should I set up my mortgage payments (divided in 4) and paid weekly for all my properties to save on interest in the long run.

[Randy Rodenhouse]

I would probably do either biweekly payments or just an additional payment per month which goes towards principal.  You can do the math to see how many years it will reduce the mortgage.  However, if you can take that money and put it to work making another stream of income then that might be a better idea than just saving some interest. It depends on your current interest rate.

[Scott E.]

If you're planning on holding these properties forever, AND if your rates are in the 7-8% range... then it's not a bad plan to do what you're describing.

[Chris Seveney]

Quote from @Laurent Fontaine:

Thank you in advance..... Should I set up my mortgage payments (divided in 4) and paid weekly for all my properties to save on interest in the long run.

 Typically paying like that does nothing - check your loan docs. When you make a payment which is not a full payment the money sits in reserve until a full payment is received. 

So you will end up making an extra months payment per year but are not expediting the reduciton in interest like maybe a credit card because you hit the minimum.

[Kristen L Garner]

Once your loan is transferred to a servicer (usually about 1-2 month after closing), the servicer's website often allows you to play around with a calculator and set up payments structures. The calculator will show you how much your increased principal payment reduces your overall length and amount of debt during the life of your loan. I personally only do this on one of my properties and I just add an extra amount to the principal during my one monthly payment.