Monthly vs. Bi-Weekly vs. Monthly mortgage payment

I’m considering paying my mortgage on a Bi-Weekly frequency. I understand how that help pay down the principal quicker (extra month’s pymt/yr).

What I am wondering is there any advantage in paying the same annual amount, but spreading the payment over 52 weeks? Does the weekly payment decrease the interest acrued, and if so is it significant enough.

With auto-transfers from bank it’s no extra work on my part whether it’s monthly, bi-weekly, or weekly, so is there any financial incentive, assuming I am going to pay the same annual amount regardless of the frequency?

I realize the biggest factor is how the interest is calculated each month, what is the industry norm?

Thanks for your help.

What made you think of a “deed in lieu” as a solution?

Have you listed your home for sale?

Have you missed any payments?

Have you opened up discussions with WAMU?

Have you spoken to them about refinancing your debt?

Typically a short sale would be a last resort for a mortgage company. You would need to put together some compelling documentation regarding current local FMV (Fair Market Value) for the mortgage company to consider a short sale.

You are not in a unique position in today’s economy and housing market and it’s not your fault! It absolutely makes no sense to pay interest on a loan that the value of the home does not support. My experience is that because WAMU is in financial trouble themselves they are very difficult to negoiate with. The likelyhood of them accepting a deed in lieu is remote because they already have too many non performing assets. I would get the house on the market “For Sale by Owner” – Realtors likely won’t list because their is no equity to pay their commission fron.

After you’ve missed two payments WAMU will begin discussing from a loss mitigation stand point. 1st try for a loan modification. This is a long shot but worth a try. It’s unlikely they will reduce principal on the loan, but nothing ventured nothing gained. If that doesn’t work ask if they will accept a short sale at a price the market will bear. Then conduct a private auction and accept the highest bid contingent upon bank approval. If this doesn’t work out then go to www.walkawayplan.com and consider their services. If you need more advice and help please feel free to contact me privately.

Mortgage advice needed

We owe $190K on a home in San Bernardino that is worth less than $119K. Should we just turn it in for a deed in lieu? The payments are about $1900K a month and we could only rent it out for about $1500. Do you think WAMU will accept less than what we owe rather than a deed in lieu??? Has anyone had any luck with WAMU or can suggest a good lawyer to help us negotiate the principle down or anything like that???

Anyone have any luck negotiating the principle of the loan down??? Thanks!!!

This has more to do with credit

This has more to do with credit rather than debt itself. I have good credit aside from one 300 dollar payment (now paid). I thought it had been paid off a few years back but it turns out about $300 was outstanding.

Not knowing it was and having moved, it is now listed as bad debt on my credit file. My question is does this essentially prevent me from accessing credit until it’s off, or does it just adversely affect my rates for things like mortgages?

I am afraid that I won’t be able to get any credit at all until the 7 yr time frame has passed by and its removed. Any advice or insight would be appreciated.