Free biweekly mortgage payments

and got bi-weekly payment setup. This letter is an outright fraud taking advantage of the ignorant. I just refinanced and signed up for bi-weekly directly during closing. Somehow the information didn't get scanned to the lender. However, I received this request from "Loan Payment Administration" and couldn't figure out why it didn't have the Wells Fargo Logo on the top of the paper. Then I noticed the statement at the very bottom of the letter (the same as shown in the example). So I called Wells Fargo Mortgage directly and set everything up.

Be very leery of letters that sound official and always go directly to your bank if there are any questions.

I think companies like this should be put out of business permanently. Someone not in the know would give a lot of personal information to set this up and the persons at the other end could essentially take off with you money without forwarding it to the bank.

Makes me also wonder how did they know the exact value of my loan. Is their someone in the process of getting a loan who is feeding information to these people for a kickback?

Actually from reading the responses on this board these companies are keeping the extra monthly payment for themselves every year. You probably won't even notice that you didn't get the 6 year early payoff.

People that run these kind of companies are evil!!!!

I appreciate this briefly article about mortgage :)
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I was worried when I researched NBAI after the fact. All of the "beware" entries on Rip-Off Report had me running back to my email from their rep to send in my cancellation form. I also called my financial advisor, and he said that while services such as NBAI aren't doing anything illegal, he said I could reduce my loan by just as many payments by making an extra mortgage payment a year, and I wouldn't have to pay $7 a month for the service. So I did some quick math and it turns out, to make that extra mortgage payment per year, I have to accrue $107 per month. According to the agreement and savings analysis from NBAI, I am paying $100 less per month for the same end result. They even suggested that if I bump my biweekly payment by $25, it would pay off my mortgage 8 years early instead of 6 years early, saving me $38,875 on a $201,000 loan. Not seeing how this is a rip-off.

I initially thought this program was through Wells Fargo because I did not pay enough attention to the letter. I called to enroll in the program and started to pick up on the fact that this program was not a good idea. The hard close was the final red flag. If I am making two payments a month, and they are only making one to my lender, what good is this? There is no early reduction of principal if it works that way. Plus, one payment is their enrollment fee($500 in my situation). Why do I need to pay someone $500 plus $3.99 a payment to get someone to remind me to make an extra payment each year? Not worth it. No way. Thank you very much for this thread to confirm my suspicions.

I received this recently due to change in my mortagage lender. I also had a doubt about the last sentence - NBA will pay my lender once a week, then how come principal amount gets reduced? Then again why are they collecting that money bi-weekly if they pay once a month? Money in my account is better than paying to somebody twice and that fellow pays only once to the final lender.

If this bi-weekly payment option exists with the lender, the lender would give us also the same option. why should we go thru NBA? I didn't enquire with my banker / lender still but they would definitely NOT agree to bi-weekly payment since the original mortagage transfer contract is payable monthly. At the most, they may ask for a new agreement.

I am writing this because I was a recent victim of credit card fraud. Fraudsters made me & my wife believe that they are from a major sattilite TV providing company. They offered reduction iin my montly service bills and asked to pay 3 months advance and collected my CC info. They were charging every day $380 to my card for more than 20 days. Lucikly I was online when the 1st transaction took place and immediately called my CC bank at night 1 AM and disputed it. CC bank blocked that & subsequent transactions.

I saw many such service providers advertisments but PLEASE google search for these types of benefits / services provided. Most of them are scams.

You all have no idea how the program works. Do some reasearch and see the value in the program or dont call in about it!

I ran the numbers for a solicitation from 'Sandra Lipsky'.

Their payment schedule increased my monthly payments (against principal) by ~$470.
After deducting fees, their schedule reduces the mortgage term from 360 to 299 months.
Aggregate fees were ~$3500, not considering interest impact.

Remitting the same increased payment on my own without involving their "service" reduces the term further to 268 months. Do it yourself.

Received letter from them as I just refinanced May 2011. Called and they sounded credible, but don't make serious decisions just like that over the phone and said I would think about it. Looked at letter again and it does not look official. Planned to call Wells Fargo for their opinion, but then read these blogs. So glad did. Tearing up letter right now!! Can you hear it!! THANKS

I received a similar letter from "Sandra Lipsky". Apparently they change their name from "Nationwide Biweekly Administration, Inc" to "Loan Payment Administration" sometime in the last couple of years. At any rate the idea of paying extra principal on loan is not magic or some kind of secret that you have to pay someone you do not know to "administer" for you. If you are competent enough to get a mortgage then you are competent enough to make additional principal payments. If you go to this page: http://www.bankrate.com/calculators/mortgages/bi-weekly-home-mortgage-pa...
you will find a FREE Biweekly mortgage calculator
This page: http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx
has a FREE Extra Payment Calculator.

Please just go make your own calculation and save yourself some money and grief from the scam artists.

People its not a scam. Yes it will cost me $1822 over the next 17 years. Think of it as a convenience fee. They make my payments for me. They have to make money too. Its a paid service. The money is worth it to me because I am saving about $57,000 in interest and paying off my 138k loan in 17 years. If you have the devotion to make that extra payment each month, then do it your self. My life style and paychecks make a bi-weekly debit better for me to manage. Stop calling it a scan. Do your research america. Everyone wants to shout SCAM before they find out what is really going on. I hope one day we do not accept ignorance in this country.

People its not a scam. Yes it will cost me $1822 over the next 17 years. Think of it as a convenience fee. They make my payments for me. They have to make money too. Its a paid service. The money is worth it to me because I am saving about $57,000 in interest and paying off my 138k loan in 17 years. If you have the devotion to make that extra payment each month, then do it your self. My life style and paychecks make a bi-weekly debit better for me to manage. Stop calling it a scan. Do your research america. Everyone wants to shout SCAM before they find out what is really going on. I hope one day we do not accept ignorance in this country.

I have went through this post, and i'm not sure at all that this is correct info, please check again with the original credit bureau which it belongs to.

This is interesting. It's an excerpt from a artical written by Scott Burns, for The Dallas Morning News. Look at the bottom of the artical for his contact information:

.......In other words, the miracle of a biweekly mortgage is that you make the equivalent of 13 payments a year instead of the usual 12. The cost of helping you with this discipline is a discounted fee of $195 plus a charge of $3.50 for each biweekly transfer from your checking account. That's $91 a year. If you pay off the mortgage in the 21 years they claim, you'd pay a total of $1,911.

I'd like to suggest a free alternative. Call it the Crusty Columnist Mortgage Reduction Plan.

Divide your regular monthly payment by 12. Add that amount to your regular monthly payment. Mail your payment.

Voila! You have just reduced the term of your 30-year mortgage, just like a biweekly mortgage payment plan.

Want to pay your mortgage off faster? Make more extra payments a year. Here's how much time you'll cut off the mortgage for each additional monthly payment a year, assuming a 5 percent interest rate:

•One extra payment cuts your mortgage to 25.25 years, 4.75 years cut;

•Two extra payments cut your mortgage to 21.9 years;

•Three extra payments cut your mortgage to 19.4 years;

•Four extra payments cut your mortgage to 17.4 years;

•Five extra payments cut your mortgage to 15.8 years;

•Six extra payments cut your mortgage to 14.6 years.
Some readers will note that my free plan cuts only 4.75 years off a mortgage for an extra yearly payment while Nationwide Bi-Weekly claims an "average of 7-9 years" for doing the same thing.

How do they get those extra years of reduction?

Simple. In their sample calculation, they use a $110,000 mortgage with a 30-year term and a $1,000 monthly payment. Converting to a biweekly payment of $500, their example shows, will reduce the term of the loan to 21.9 years, a saving of 8.1 years.

The interest rate on their sample mortgage is conspicuously absent.

My calculator shows it to be 10.42 percent, a rate that hasn't been seen in about 15 years. That's also the rate cited in all the faxed, but undated, newspaper stories. The mathematical truth Nationwide Bi-Weekly doesn't mention is that when interest rates were high, an extra principal payment had more power. Today, when interest rates (and monthly payments) are much lower, an extra payment doesn't help as much.

Nationwide Bi-Weekly Administration Inc. makes its sales claims based on mortgage rates from 15 years ago. You won't get the results it claims.

(Questions about personal finance and investments may be sent to Scott Burns, The Dallas Morning News, P.O. Box 655237, Dallas, TX 75265; or by fax: (214) 977-8776; or by e-mail: scott@scottburns.com. Check the Web site: www.scottburns.com. Questions of general interest will be answered in future columns.)

We Just received this letter in the mail today. Read it thought it was a good idea. So we went to Google to see what we could find out.

I told my wife why don't we check on this and call Monday August 31, 2009. But after thinking about the letter, I decieded to check on Google, well what We read so far does no sound good.

Thank you but no thank you.

SCAM! SCAM! SCAM!

I enrolled my mortgage and 2 credit cards in Nationwide Biweekly's Interest Minimizer program 4 years. Since then I increased the equity in my home every year and I went from a 8 year payoff on my credit card to paying it off in 2.5 years. This year I moving to a new home- and the program will transfer to my new home at no additional cost- so it doens't matter that I'm not keeping my home for the full term, because i received an immediate benefit from the addtional equity i built, and my one-time setup fee gave me a lifetime membership. This means it doesn't matter how many times my loan is sold, if I move or I refinance the program stays with. And sure i could add extra to my principal- but the biweekly provides gives me the discipline and consistency to do it without thinking- plus i have the customer service to help me if anything goes wrong whether on the mortgage side or the biweekly side. Every company makes mistakes, but Nationwide Biweekly has a A- rating with the BBB, they have over 250,000 customers, and they are listed with Dunn and Bradstreet. If you look at the reliability report on the BBB website about our Nationwide Biweekly, you’ll see a category called “Customer Experience.” Under this section it states, “When considering complaint information, please take into account the company's size and volume of transactions, and understand that the nature of complaints and a firm's responses to them are often more important than the number of complaints.” This information is very important and relevant in making a thorough evaluation. In the past 36 months NBA has had 78 complaints. The percent of complaints for a company should be less than 1% of the total volume of business, since it’s impossible for any company to eliminate all complaints. Over the past 36 months, the volume of business for Nationwide Biweekly's company has been over 200,000 customers. This makes the percent of complaints 0.00048 of 1%. Also, you will find that none of the complaints are unresolved. NBA has addressed 100% of the complaints that the Better Business Bureau has sent to them.

Hi, I live in Aurora/CO, we bought a house March/2008 and soon we moved in (me and my husband, my husband is a reporter in Denverpost), we received this letter from Nationwide Biweekly Administration, Inc-president Daniel Lipsky - address from Nationwide Biweekly: 855 Lower Bellbrook Road - Xenia/OH. I thought would be great pay the house in 22 years instead 30. I told to my husband, maybe we should do that. The mortgage is in my husband name, he is american, I am not. So, after that my husband signed this document agreeing the money would be taken from his bank account, he signed this document in April/21/2008, they charged non-refundable fee US$ 245.00.
Nationwide Biweekly Administration wrote in this document, they would take one-half of our monthly payment loan"939.46"+$40.00+$2.25(their biweekly fee)-> $981.71, the first collection date would be August 08,2008 Friday. The first collection date, which Nationwide Biweekly took the money from my husband account was August 13, 2008 and they took the right amount $ 981.71, so the second collection date was August 22, 2008 Friday, that day started our nightmare but we just found out this weekend when my husband looked his account in internet. Nationwide Biweekly from Daniel Lipsky took from my husband account the double of the value: $1,963.42 what we were not expecting, and my husband did not signed for, they took this amount without commu nicate to my husband Christopher Osher. We paid our bills(energy, water, satellite TV, car...he put gas, we ate in restaurant), thinking we spend $900.00 but we should have $80.00 in our account. But we had a nightmare, 13 OD CHARGES in my husband bank account (each fee: $ 27.75 total in OD Charges $360.75) but is coming more two debits from the weekend before we found out that August 31,2008 evening, what we could do? Call them? They were closed Sunday and Labor day. Sorry that...but how that company can "f..." somebody's life, financial life, credit score... just doing a "mistake" in your second collection date taking the double of the value that is authorized for...
We are very unhappy because we trusted on them.

Thank you, great advice.