Alexey
Rockaway,#2Consumer Comment
Fri, May 02, 2003
While most lenders will let you pay on a bi-weekly basis as mentioned above, what most people tend to ignore is that most lenders use a Clearing House. What that means is that you submit your payment every 2 weeks, and it goes to the clearing house and sits there. The clearing house submits your payments to the bank every 1 month. That means that you only get the benefit of 1 extra payment a year - NOT a whole payment amount applied to principal! And the clearing house is making the interest on your money. Travelers does not use a clearing house. You submit payments to them directly. That means - you make interest on your money, and you pay out faster. Besides - the bi-weekly program doesn't cost you anything. It's the lack of pre-payment penalty that is offset by the higher interest rate, NOT the bi-weekly program. As a matter of fact - Travelers will actually DROP your rate 1/4 of a point if you choose the bi-weekly program with an automatic bank draft.
Alexey
Rockaway,#3Consumer Comment
Fri, May 02, 2003
While most lenders will let you pay on a bi-weekly basis as mentioned above, what most people tend to ignore is that most lenders use a Clearing House. What that means is that you submit your payment every 2 weeks, and it goes to the clearing house and sits there. The clearing house submits your payments to the bank every 1 month. That means that you only get the benefit of 1 extra payment a year - NOT a whole payment amount applied to principal! And the clearing house is making the interest on your money. Travelers does not use a clearing house. You submit payments to them directly. That means - you make interest on your money, and you pay out faster. Besides - the bi-weekly program doesn't cost you anything. It's the lack of pre-payment penalty that is offset by the higher interest rate, NOT the bi-weekly program. As a matter of fact - Travelers will actually DROP your rate 1/4 of a point if you choose the bi-weekly program with an automatic bank draft.
Alexey
Rockaway,#4Consumer Comment
Fri, May 02, 2003
While most lenders will let you pay on a bi-weekly basis as mentioned above, what most people tend to ignore is that most lenders use a Clearing House. What that means is that you submit your payment every 2 weeks, and it goes to the clearing house and sits there. The clearing house submits your payments to the bank every 1 month. That means that you only get the benefit of 1 extra payment a year - NOT a whole payment amount applied to principal! And the clearing house is making the interest on your money. Travelers does not use a clearing house. You submit payments to them directly. That means - you make interest on your money, and you pay out faster. Besides - the bi-weekly program doesn't cost you anything. It's the lack of pre-payment penalty that is offset by the higher interest rate, NOT the bi-weekly program. As a matter of fact - Travelers will actually DROP your rate 1/4 of a point if you choose the bi-weekly program with an automatic bank draft.
#50
Sat, January 05, 2002
They filed the following rebuttal to the above Rip-Off Report: Their email: [email protected] Their name: C.D. Their relationship to the company: Owner Rebuttal: Almost every lender on the planet will allow you to pay down your debt early via bi-weekly payments. In fact, you don't even have to sign up for the bi-weekly program, which usually entails allowing automatic withdrawals from your checking account, a one-time setup fee, and a per-payment fee. Just send in 1/12 of a monthly payment extra and have it applied toward your principle. *NO* lender should imply that a higher interest rate is offset by the ability to pay bi-weekly. That should be a freebie, and would be if customers would wake up and see that it's free - they could do it for nothing IF it was beneficial to do so (paying off early may not be in your best interest!)
#60
Fri, January 04, 2002
They filed the following rebuttal to the above Rip-Off Report:
Their email: [email protected]
Their name: Dale
Their relationship to the company: Consumer Suggestion
Rebuttal:
My Mortgage is through Traveler's and actually I am refinancing with them again right now. The penalty is fair because the mortgagee has the choice to mortgage with it or without it. If you elect not to agree to the penalty, you get a higher interest rate. So it depends on what you plan to do. If you plan on staying put for a few years, then taking the lower interest rate will be a great benefit.
If you are unsure about your job situation or want to move within a few years, then take the higher interest rate without the penalty attached. Realize that unless you move within a year or so from the penalty agreement acceptance, the savings you get from the lower interest rate will more than compensate you despite the penalty.
Also, realize that you can refinance with Traveler's and no
penalty applies. The thing that is good about Traveler's is that although their interest rate is a tad higher compared to others, they allow bi-weekly payments that pay down the principle better than just monthly payments and bi-weekly means you make an extra payment each year that they apply to the principle and that turns out to save you quite a bit.
I will pay for a 30-year mortgage in less than 20 years (actually about 16 years in my case) using this payment method.
#70
Mon, December 31, 2001
They filed the following rebuttal to the above Rip-Off Report:
Their email: [email protected]
Their name: KENDRA
Their relationship to the company: Consumer Suggestion
Rebuttal:
SIR
REGARDLESS OF THE UNPLANNED MOVE OUT OF STATE FOR THE PURPOSE OF A BETTER JOB, IF THE PAPERS SAY THAT YOU MUST PREPAY A 5, 4 OR 3% PENALTY AND YOU SIGNED THE DOTTED LINE THEN THAT IS WHAT YOU HAVE TO AGREE TO DO. DID THEY TELL YOU THAT IF IN ONE OR TWO YEARS YOU GET A BETTER JOB OFFER TO TAKE IT? MOST LIKELY NOT. THEY ARE NOT DOING ANYTHING ILLEGAL OR ANYTHING OUTSIDE OF THE BANKING LAWS. MOST MORTGAGES HAVE A PREPAY PENALTY WHEN YOU
REFINACE OR INITIALLY OBTAIN A MORTGAGE. WHAT ARE YOU CRYING WOLF ABOUT?