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Using a bimonthly mortgage plan can provide you with a few benefits as a homeowner. At the same time, there are a few drawbacks that you should be aware of. Here are some of the pros and cons of the bimonthly mortgage plan.
Pros
One of the biggest advantages is that you are going to be able to save a considerable amount of interest on the loan. With this type of payment plan, you are going to end up making one extra payment every year. This means that you will be cutting off over 6 years of payments on a 30-year mortgage. You will essentially pay off the mortgage much faster and save quite a bit of money in interest at the same time.
Cons
One of the disadvantages of this program is that you are going to potentially have to pay money to enroll in it. Many lenders charge you a certain fee to get involved and to deduct your payment twice a month.
Another disadvantage of these plans is that you are going to have to come up with more money to make your payments. Since you are making an extra mortgage payment every year, you will have to be more disciplined financially.
