Someone offered me the ability to make 26 bi-weekly mortgage payments a year for a fee. Is there a way I can pay down my loan faster on my own without paying a fee to sign up for this plan?

By making additional payments and applying your payments to the principal, you may be able to pay off your loan early. Before choosing a bi-weekly payment, be sure to review your loan terms to see if you will be subject to a pre-payment penalty if you do so. Check if your servicer charges any fees for a bi-weekly payment plan. You may be able to accomplish the same goal without the fee by making an extra monthly mortgage payment each year.

Tip: Even if you don’t set up a bi-weekly plan with your servicer, you can accomplish the same goal of paying down your loan faster by:

• Making one extra mortgage payment a year on your own; or
• Dividing your monthly payment by 12, and adding that amount to your payment every month