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Good Day All,

CitiMortgage has recently mailed us an offer for their "BiWeekly Mortgage Payment Plan" claiming that it will save my family thousands in interest over the life of their mortgage.

"They draft one half of the monthly payment every 14 days from a checking account. The payments are remitted to Citi on the first business day of each month. The terms of the mortgage stay the same. During the first month of the plan you pay your regular mortgage payment, then 14 days after they will begin the biweekly drafts. Enrollment fee= $375."

We currently have a 5.5% rate on a mortgage in the 150K range.

Fine Print: $10 fee for insufficient funds, will automatically retry if insufficient funds are found, will charge this unpaid draft in the next biweekly cycle; $0.75 transaction fee per draft (0.75 x 26 drafts = $19.50 / year).

Total Cost: $394.50
Total Estimated Savings: ~$10,000
Total Estimated Time Saved: 2 years

Any advice?

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