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How the big companies do biweekly mortgages

Here are the policies on biweekly mortgage payments from the top five loan-servicing companies:

Washington Mutual: Customers can set up a biweekly schedule prior to closing or enroll in the Equity Accelerator Program, which allows customers to pay half of their mortgage payments every two weeks by electronic draft.
Cost:
$295 upfront, plus $5 per month service fee. The pay-as-you-go version is $9 per month.

Wells Fargo Home Mortgage: Will allow customers to make a payment every two weeks without enrolling in a biweekly program. Customers must specify that the payment is to go toward the mortgage. Also offers Home Equity Enhancement Program to automatically draft half of the mortgage payment every two weeks.
Cost:
$295, plus $2.50 per transaction. The pay-as-you-go version is $4.15 per transaction.

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Chase Manhattan Mortgage Corporation: Allows customers to send a half-payment every two weeks, but each homeowner "really needs to talk to their service agent," says Greg Harrington, senior vice president, mortgage operation. Chase also offers Equity Accelerator, which automatically drafts half a payment every two weeks.
Cost:
$295 up front, plus $2.50 per transaction. Pay-as-you-go program is $9 per month.

Bank of America Mortgage: The only way to make biweekly payments is to set up a biweekly loan initially or to enroll in the Bank of America Accelerator Program, which drafts half of the mortgage payment every two weeks.
Cost:
$379 up front. Pay-as-you-go version is $3.75 per transaction.

Countrywide Credit Industries: Customers may send a half-payment every two weeks, but with most loans one full payment must be received by the 15th of the month. Countrywide offers Pay Plan 26, which will draft half of the mortgage payment automatically every two weeks.
Cost:
$2 per transaction.

Sources: National Mortgage News and executives from each institution.
Compiled by: Dana Dratch

-- Posted: Sept. 20, 2001
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