Wells Fargo Mortgage "BiWeekly" payment is a lie, steals YOUR interest! Des Moines Iowa

Wells Fargo 'offers' "BiWeekly" payment option, only to sit on YOUR money for a month and keep interest that would otherwise be YOURS. Furthermore, because they do not take the payment biweekly, YOU get stuck with the same old monthly interest accruals!

Background - no matter what the loan, the more often you pay, the less interest you end up paying in the long run. That is because the principle (owed balance) on which the interest is computed is lower more often.

If you had a $300,000 mortgage on which you pay $3000 a month, then every month you would have interest added on that balance. But if you paid every two weeks, the first two weeks would have the same 1/2month interst, but the second two weeks would have less interest because it is paid on a lower balance.

Wells Fargo happily takes your two payments during the month, but SITS ON THAT MONEY in some account that you can be d**n sure they are making interest on! In the meantime, interest on YOUR mortage is accruing at the same monthly rate as if you were not making the biweekly payment.

So, Wells Fargo CHEATS you out of interest you would have earned in any other bank, and charges you FULL interest you would pay on a monthly rate.

J & S
Hereford, Arizona
U.S.A.