How to set up Bi-weekly mortgage payments

jdadwilson

Read the twice-monthly question... didn't help. My 'payment' is bi-weekly, but it is really not a payment in that the amount ($800) deducted from my bank account is placed in bank escrow account and then on the first of each month the bank deducts the payment amount ($1200) from the escrow account. Thus, over the year there will be 13 payments vs. just 12.

I set up an account to move the bi-weekly funds into a 'local' escrow account but how do I set up the mortgage account to handle the funds from the escrow account?

TIA for any assistance
jdadwilson

Sherlock

I suggest you use the loan payment reminder or memorized payee to withdraw the funds from the escrow account: open the loan account, press Ctrl + Shift + N, select Enter Loan Payment  

Note:  Bi-weekly means you'll be making 26 payments to the escrow versus 12 monthly payments to the mortgage each year.

If you're paying $800 bi-weekly to escrow for a $1200 monthly mortgage, you'll be paying $1600 a month toward the mortgage ($400 extra principle) from the escrow account except when there is a third payment in the month (twice a year) in which case you'll pay $2400 toward the mortgage ($1200 extra principle) from the escrow account.