Are you really ready to start paying your bills directly through your checking account? If that’s the case, you definitely want to make sure that you are always able to get the best terms possible in your favor. In other words, if you really want to make sure that you can pay your bills through your checking account automatically, you want to make sure that you stay on top of it. From a purely financial position, the biggest thing that you do not want to do is just to assume that you won’t have anything to think about when you set up automatic payments. If the company makes a mistake and pulls the money at the wrong time, it can end up costing you a bundle in late fees as well as overdraft charges.
Think that account resolution would be a snap? Think again — it’s all what the terms and conditions for that particular mortgage company state. For example, if the payment is set to be due on the 13th of the month, and the terms say that it is allowed to be debited up to 7 days before the due date, then you cannot be upset with them if they debit your account on the 8th of the month. It’s all in the terms and conditions, which means that if you make the mistake of getting the debits wrong in your account, then you will be responsible for any and all fees associated with your mistaken.
So, if you’re really serious about doing automatic payments, especially for something as important as your mortgage, there are a few things that you will need to pay attention to. First and foremost, you must read the terms and conditions associated with your payments. While it’s true that this point was just addressed, it truly does bear repeating. Your contract terms will specify all the important information, including what type of fees would be associated with the automatic debit service, if there are any fees for the service to begin with. In order to encourage people to actually make their payments on time, some mortgage companies simply give a slight interest rate discount. Don’t overlook this discount at all, since it can help you save a little bit of money over the course of a year. In fact, some people save so much money that it actually adds up to a full mortgage payment at the end of the year — how cool is that?