I would like to make my mortgage payment twice a month, but my bank tells me they will not accept partial payments and will not apply my payments until they receive the second payment each month. Is this legal?
This is a common practice. Mortgage lenders and those servicing the contracts will generally accept only full payments. There is no obligation on their part to accept lesser amounts. Also, some lenders do not allow you to skip a payment later, because you made two payments in one month earlier. The contract calls for a monthly payment and some expect a payment each month.
By making an extra payment you reduce the principal of the loan at an accelerated pace. This means that there is less interest owed over the life of the loan. If you want to save a lot of interest, make those extra payments, but only in full payment amounts.
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This is a common practice. Mortgage lenders and those servicing the contracts will generally accept only full payments. There is no obligation on their part to accept lesser amounts. Also, some lenders do not allow you to skip a payment later, because you made two payments in one month earlier. The contract calls for a monthly payment and some expect a payment each month.