Biweekly mortgage payments can be one way to pay down a mortgage faster and potentially reduce the amount of interest paid over the life of the loan. Instead of making one full mortgage payment each month, you make half of your monthly payment every two weeks.
Because there are 52 weeks in a year, a biweekly schedule results in 26 half-payments annually. That adds up to 13 full monthly payments instead of the usual 12. The additional payment is applied toward the mortgage balance, helping reduce the principal faster.
Paying down the principal sooner can also reduce the amount of interest that accrues over time. How much you could save depends on factors such as your loan balance, interest rate, remaining loan term, and how long you keep the mortgage. A biweekly schedule can also shorten the amount of time it takes to pay off the loan.
If your lender or loan servicer doesn’t offer an official biweekly payment program, you may still be able to achieve a similar result by making additional principal payments. One approach is to divide your regular monthly payment by 12 and add that amount to each monthly payment.
Another option is to make one additional principal payment each year. Before using either strategy, confirm how your servicer applies extra payments and whether any fees or restrictions apply.
Biweekly payments aren’t the right strategy for everyone, but they can be a useful option for homeowners who want to accelerate their mortgage payoff. Whether you use a formal biweekly program or make additional principal payments on your own, understanding how the extra payments affect your loan can help you decide if the strategy fits your budget and financial goals.
