Tuesday, July 21, 2015
Turn to your credit union for biweekly payments
Biweekly payments give Dupaco members twice the benefit: Loan savings at absolutely no cost.
But there are plenty of mortgage-payment companies out there trying to make a quick buck off this popular payment option.
With biweekly payments, you end up making one extra payment each year—both shortening the life of the loan and reducing the interest you pay. But borrowers don't realize the savings of more frequent payments when they use a lender or company that charges fees to do so.
Laurie Sullivan, a servicing specialist in Dupaco's Real Estate department, recently worked with a member who got burned by an outside loan-payment company that "offers" to transfer funds from consumers' accounts to their mortgage servicers on a biweekly basis.
The company had been charging the Dupaco member $68 a month—for over the past year—to move funds from her Dupaco account to her mortgage account, also held at Dupaco.
"I about went through the roof when I found out how much she was paying," Sullivan says. "I felt so bad for her."
At Dupaco, biweekly payments are a benefit of membership. In fact, there are no fees to set up biweekly payments on any loan at the member-owned credit union. Members are offered this cost-savings option, along with other payment plans, when they take out a loan.
"Members can always switch to biweekly payments at a later date," Sullivan says.
By providing sound advice and fee-free services to help members pay less and save more, members can feel confident that their credit union is working in their best interest.
To learn more about setting up fee-free biweekly mortgage payments, call Dupaco's Real Estate department at (563) 557-7600 / 800-373-7600, ext. 204.