Dear Bob: I have frequently heard if your mortgage calls for monthly payments, you can make a significant interest savings if you pay twice monthly. For example, my mortgage payment is due on the first day of each month. I would like to pay half of my monthly payment 15 days before the due date and the remainder on the due date.

But my lender says the only way I can do this is through a third-party company, which will charge me a sign-up fee of several hundred dollars plus a monthly fee. If I just pay the lender twice a month doesn't the lender have to accept my payments? -- Arthur L.

Dear Arthur: No. When you obtained your home loan, you agreed to pay monthly payments due on the first day of each month with a grace period of a few days.

There are some third-party companies that, for a hefty fee, will deduct from your checking or savings account half of your regular principal and interest payment on the first day of each month and the other half on the 15th day of each month.

The result is the equivalent of making 13 monthly mortgage payments every 12 months, thus shortening your mortgage's life by about seven years and saving substantial interest.

However, you can do this yourself at no extra cost. Just divide your monthly mortgage principal and interest payment by 12 and add that amount to each regular mortgage payment.

For example, if your principal and interest payment is $1,200, dividing by 12 results in $100. By adding $100 extra principal payment each month (which the lender must accept), you accomplish the same interest savings as a biweekly mortgage.

Dear Bob: My wife and I own a vacant lot worth $280,000, according to our last property tax bill. We wish to give it to our son and his wife so they can build a house there. What would be the tax consequences for us and them? -- L.M.

Dear L.M.: You can give the lot to your son and daughter-in law, preferably using a quitclaim deed.

You and your wife can each give up to $12,000 per donee per year without federal gift tax consequences. In your situation, that means you and your wife can give a $24,000 total interest in the lot to your son and a $24,000 interest in the lot to your daughter-in-law, for a total of $48,000. If you do this in 2007, you both could give away another $48,000 total interest in the lot in January 2008 or later, for a total two-year gift of $96,000.