Payment Options

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Lenders typically offer several options for making mortgage payments, which may include:

1. Automatic Withdrawal: This method involves setting up an automatic deduction from your checking account at a designated time each month. It offers convenience since you don't have to worry about mailing or making online payments. However, ensure that your account has sufficient funds to cover the withdrawal and verify that the payment has been processed as scheduled. To enroll, request an enrollment form from your lender.
2. Online: You can either establish automatic bill pay through your checking account or provide your lender with your checking account details for monthly automatic debits. Some lenders may also permit setting up a biweekly automatic debit, although this varies by lender.
3. Mail: If online payment or automatic withdrawal is not feasible, you can make payments through the U.S. postal service. If your lender provides a mortgage coupon book, include the appropriate coupon with your payment. It's important to note that the mortgage payment must be received by the due date, not the postmark date, unlike most tax bills.
4. Phone: Paying by phone eliminates the need to send a check via mail and reduces wait time. However, some lenders may charge a fee for this service. This option is generally best utilized when the payment would be late if sent by mail and online payment is not possible.
5. Wire Transfer: Wiring money is a quick way to make payments to your lender. However, keep in mind that wiring companies typically charge fees, making this an expensive option if used regularly.
6. Local Branch: If your mortgage is with a bank or credit union that has nearby branches, you may have the option to make your payment in person at one of their locations.

Should you chose, you can pay your mortgage faster

Paying off a mortgage faster is a goal many homeowners aspire to achieve. By taking proactive steps and adopting certain strategies, it's possible to shorten the loan term and reduce the overall interest paid. Whether through making additional payments, switching to bi-weekly payments, or refinancing to a shorter loan term, there are various approaches that can help homeowners accelerate their mortgage payoff and gain financial freedom sooner. 

• Bi-Weekly Payment Plans : 

At some point, you may come across a mail notice suggesting that you can accelerate your mortgage repayment by switching to a bi-weekly payment plan. Instead of making a full payment once a month, you make half a payment every two weeks. Over the course of a year, these 26 half-payments add up to 13 full payments, effectively allowing you to make an extra payment annually. 

It's important to note that such notices often originate from third-party companies that typically charge a substantial setup fee. If your lender does not offer a free bi-weekly payment plan, you can achieve the same effect by making an additional payment once a year or by paying 1/12th extra each month. 

• Transfer of Ownership/Servicing: 

It is quite common for lenders to sell the loans they originate on the secondary market. If your loan is sold, the new owner of the loan is obligated to honor the original terms. In many cases, the original lender may continue to service the loan even if they no longer technically own it. However, if the servicing responsibilities are transferred to a new company, your previous servicer is required to provide you with a notice at least 15 days prior to the transfer, including the name and contact information of the new servicer. 

To avoid falling victim to scammers who send fake transfer notices, it is advisable to contact your current servicer and confirm the legitimacy of the transfer. Additionally, your new servicer must send you a notice as well. During the 60-day grace period following the transfer, you cannot be penalized if you mistakenly send your payment to the old servicer.