When a home-owner changes to a Bi-weekly budget, it allows them to accumulate the equivelency of a 13th payment over the course of an entire year by giving them the ability to make 26 Bi-weekly payments.  Funds are forwarded to the lender once per month beause that is the only way they will accept and post them.  Periodically, the lender will receive the equivilent of 3 Bi-weekly payments to post in a single month, which allows one Bi-weekly payment to be applied to the principle balance of the loan.  Funds are immediately forwarded to the lender, not held and applied at the end of the year like some Bi-weekly payment services do.  Funds applied directly to the loan's principle balance increases the homeowner's equity as much as 300% or more.  It also greatly reduces the amount of interest they have to pay because the lender will be compounding the interest on a lesser amount.

 

Budgetting Bi-weekly has been proven to be easier than trying to budget monthly, especially for home-owners on a tight budget.  We service many home-owners who, on a monthly budget, could not accumulate any additional funds to be applied to their mortgage.  However, budgetting Bi-weekly allows them to accumulate these funds without even realizing it.  It is more sub-conscious than financial because most people are paid Bi-weekly.  As a result, trying to budget monthly for them is the worst way for them, especially with a motgage payment.  It is much easier to figure two or three small amounts into a budget more often than trying to figure a larger one-time amount into a budget.

 

Right now, less than 2% of home-owners make any kind of additional principle payments and thus they lose thousands and thousands of dollars in interest and  accumulate hardly any equity in their home.  The reason for this is simply "human nature."  Making additional principle payments requires discipline.  It requires the home-ownner to establish a permanent habit and human nature wirks against them.  Some home-owners have made an additional pronciple payment once or twice, but because they have not formed a habit of doing it, they are not taking full advantage of the savings and equity build-up that is available through this free Bi-weekly service,and we are talking about tens of thousands of dollars.

 

A common objection of home-owners who have been offered Bi-weekly mortgage service by competitors charging hundreds of dollars, is that they do not think they should waste this money for letting someone else do what they can do themselves.  The bootom line is that most home-owners never form this habit and they end-up losing thousands andthousands of dollars in unnecessary interest payments and lost equity.  Many times, the home-owners who may have been paying on a mortgage for several years are asked, " If you think you can do it yourself - Why haven't you?"  Our free service eliminates this kind of objection and the need for a salesperson to physically be there with the home-owner to help them make a several hundered dolar decision,even though it is in their best financial interest.

 

You will find that many homeowners who have managed to disiplined themselves to consistently make additional payments are glad to use the free service for several reasons.  One is because it's automatic; they don't have to worry about it anymore, because making additional principle payments to mortgage lenders can be a hassle if you're not used to doing it.  Also, many lenders do not apply or post these additional principle payments correctly.  In fact, the FDIC estimates that 47% of all mortgages contain mistakes costing homeowners $12 to $14 billion dollars each year in overcharges.  That's a lot of money and there is no way to discover these errors except to do an audit on the mortgage.  We do service many homeowners who are used to making extra payments themselves, but because of the possibility of lender errors, they now have us handle everythin for them.

 

The auditing program, which is supplied to homeowners after using the service for  a MINIMUM of 6 months, will track the Bi-weekly payments to make sure they are applied correctly by the lender.  If a lender receives a principle payment at the beginning of the month, but does not apply it until the end of the month, the homeowner can lose-out on about 33% of their savings.  The reason is because the lender has been compounding the interest the whole month on a higher amount.

 

Homeowners can find companies that provide this audit service, but some companies caherge a flat fee of about $150.00 per year to perform a motgage audit.  Others don't charge anything up-front, but if a homeowner has been overcharged, the auditing company can get up to 50% of the amount overcharged.  That should be a good indication to homeownersw that ther are enough errors being made for the auditing companies to work on a percentage basis.

 

Homeowners who have a computer and can run the Mortage Manager software will be sent a password to enter, allowing the auditing program to be accessed. You will notice in the software, the Amortization Schedule cannot be opened.  This is because the auditing portion of the software needs a password to run the program. A homeowner will want to run an audit about once per year and this password is only sent to homeowners who have been using the service for a minimum of 6 months- ABSOLUTELY NO EXCEPTIONS.

 

What really helps establish the Mortgage Manager as a leader in the industry can be directly attributed to the refinance policies of many lenders and mortgage companies., as well as the high start-up fees that other companies charge for this exact same service.  We have virtually eliminated all competition by offering this service absolutely FREE to homeowners.