Criticism
Many real estate experts argue that keeping an existing monthly payment mortgage and making one extra payment each year will result in the same savings as a Biweekly Mortgage payment plan would. They also argue that some mortgage companies charge large amounts of service fees to convert a mortgage to a Biweekly payment plan, and this may constitute an indecorous business practice on behalf of these mortgage companies. Another argument against a Biweekly Mortgage is that the lender and 3rd party processors place the first half of the monthly payment into holding until the second half of the monthly payment is applied. This system allows the bank to minimize profitability losses from the program. The Biweekly Mortgage payment program would be much more real, lucrative, and less misleading if interest and principal was applied to the account on a biweekly basis.
Read more about this topic: Biweekly Mortgage
Famous quotes containing the word criticism:
“Homoeopathy is insignificant as an art of healing, but of great value as criticism on the hygeia or medical practice of the time.”
—Ralph Waldo Emerson (1803–1882)
“In criticism I will be bold, and as sternly, absolutely just with friend and foe. From this purpose nothing shall turn me.”
—Edgar Allan Poe (1809–1845)
“A tailor can adapt to any medium, be it poetry, be it criticism. As a poet, he can mend, and with the scissors of criticism he can divide.”
—Franz Grillparzer (1791–1872)