Bi-weekly

The methods outlined hi the book make sense from a purely logical perspective. However, from the consumer perspective, the United States mortgage banking system is the most expensive institutional system on earth. The banking lobby is powerful. Many of us have direct experience with lenders' reluctance to improve our welfare without direct benefit to their "bottom-line". Bi-weekly mortgages substantially increase lenders bookkeeping costs. Their computer systems are ruled by software designed to process monthly payments, so that other payment schedules cause them unwanted costs -- more expensive manual administrative costs compared to the efficiencies provided by existing, front-end expensive automated payment processing systems. Since most mortgage companies package mortgages to sell on the secondary market as "mortgage -backed securities", they often have a difficult time combining and marketing these less familiar investments with the "conventional" mortgages secondary market investors are more secure with. Finally, mortgage companies have no motivation to restructure mortgage payments to give back the money they are getting from you; your interest savings are in direct conflict with their profits.