Is it better to pay mortgage weekly or monthly?

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asked Nov 26, 2023 in Real Estate - Renting by Abdoaldu (1,660 points)
Is it better to pay mortgage weekly or monthly?

2 Answers

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answered Sep 19, 2024 by layla (84,650 points)
If possible it is better to pay mortgage weekly or biweekly as you can save on interest and pay down the mortgage faster than paying the mortgage monthly.

Making weekly mortgage payments can help you reduce the interest you pay over the life of the loan.

Additionally, paying the mortgage weekly instead of monthly can also help you stay on top of your mortgage payments and manage your cash flow more effectively.

If you miss a mortgage payment your lender will send out a notice and may offer a 15 day grace period to pay the missed mortgage payment without a penalty.

If you fail to pay the missed mortgage payment then you will be paying late fees and more interest and you will still owe that missed mortgage payment and can still be foreclosed on even though you may the other mortgage payments.

A missed mortgage payment will also eventually be reported to the credit bureaus and lower your credit score.

You can pay half your mortgage if your lender accepts half payments or partial mortgage payments.

Some mortgage lenders don't accept partial payments and some hold them in special accounts that are called suspense accounts or unapplied funds accounts instead of applying them to the loan immediately.

You may also be able to sign up for a biweekly mortgage payment plan to make half your normal mortgage payment every 2 weeks and pay your mortgage down faster.

You can skip a mortgage payment but to skip a mortgage payment and keep your mortgage in good standing you must have a strong credit score to qualify for a skip-payment mortgage and you must otherwise be up to date on your mortgage payments.

You should be aware that you will still owe the interest and principal that you would have paid in that month.

You can usually skip a mortgage payment and add it to the end of the mortgage loan and pay it later.

But before you skip a mortgage payment and add it to the end of the mortgage you need to speak with the bank or lender who is holding the mortgage on your home.

Some banks will allow you to skip or defer a mortgage payment when you need too and then add the mortgage payment to the end of the loan.

But always speak to the bank or lender about it first otherwise if you just skip a mortgage payment then they will mark it down as being late or delinquent on your mortgage.

Then they will hit you with late fees on your mortgage and then it will be reported to the credit agencies that control your credit score.

Your credit score will then be lowered as a result.

But if you get approval from the mortgage company or lender of the mortgage to defer or skip the mortgage payment then it won't harm your credit score.

However skipping or deferring mortgage payments just makes the mortgage take longer to pay off and can add more interest.
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answered Sep 26, 2024 by AlbertDean (1,360 points)

I usually pay my mortgage monthly too since my income comes in once a month, so it just feels easier to handle all the bills in one go and see what’s left for the rest of the month. I think it depends on your situation, though. Some people prefer breaking it up into smaller weekly payments to save on interest over time. If you're renting or looking for a rental, check out axonproperties.ca. They’ve got a variety of rental options, and they can also help by explaining all the possible payment options.

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