Bi monthly payment company. To do or not.

The bi monthly idea is usually not a good idea.  First of all you get charged for doing it.  You can do it yourself by setting up an automatic draft.  Have the bank transfer every two weeks the amount you want sent.  Then once a month have your payment for the house taken out.  Essentially you are making one extra principle payment each year. A better idea is to enroll in a mutual fund program and take the extra principle you are paying and invest.  Over a 10-15 year period you should earn alot more than 5%.  The 5% is 7% x .65 which is actually 4.55. However I use 5% since with standard deduction there may be some variance in there. All you accomplish by paying down your mortgage is make it an easier target for a lawsuit or foreclosure.