top of page
Biweekly Mortgage

Biweekly Mortgage

A biweekly mortgage is a type of home loan that is structured to be repaid on a payment schedule that occurs every other week. Unlike a traditional mortgage with a monthly payment, homeowners making biweekly payments are making half payments twice a month. This type of mortgage is gaining in popularity as the total number of payments a year is 26, compared to the 12 payments made in a year with traditional mortgages. This means the homeowner is essentially making the equivalent of 13 full payments a year which adds up to one extra full payment being made every year. This leads to significant savings in interest payments over the life of the mortgage loan. The idea behind a biweekly mortgage is that the homeowner is making that one extra payment throughout the year which is effectively reducing the principal that needs to be paid off on the loan. While biweekly mortgages look like a great idea, homeowners need to make sure that the lender isn't charging for the biweekly option in order to gain the advantage. Specifically, some lenders will offer to set up a biweekly payment system but will still view each payment as a monthly payment, meaning that the payoff date of the loan isn’t changed and that the one extra payment won’t be taken into account. Therefore, it’s important to read the fine print on the loan to make sure that a biweekly mortgage plan isn’t charged and that the benefits of making extra payments can be taken advantage of throughout the loan.

bottom of page