A biweekly payment mortgage is a type of mortgage where the borrower makes half of their regular monthly mortgage payment every two weeks.
This results in 26 half-payments each year, which adds up to 13 full monthly payments instead of the usual 12.
This extra payment goes directly toward the principal balance of the loan, helping to pay off the mortgage faster and potentially saving money on interest over time.
Some benefits of a biweekly payment mortgage include:
- Faster Loan Repayment: By making 13 full payments a year instead of 12, the borrower can reduce the principal more quickly, leading to the mortgage being paid off faster.
- Interest Savings: The extra payments reduce the principal balance more quickly, which means interest is calculated on a lower amount over time.
- Convenience: For some, making smaller, more frequent payments aligns better with their pay schedule (especially for those who get paid biweekly).
However, it’s essential to check with the lender to ensure they accept biweekly payments, as not all mortgage companies do.
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Additionally, some lenders may charge fees or require enrollment in a special program to set up biweekly payments. Ask us here.
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