How does biweekly mortgage payment work?

Instead of paying once a month, you pay half your monthly mortgage amount every two weeks. Since there are 52 weeks in a year, you make 26 half-payments, which equals 13 full monthly payments per year.

Do banks charge for biweekly payments?

Some lenders or third-party servicers charge a setup fee or transaction fee for biweekly plans. However, you can often achieve the same result for free by manually making one extra principal-only payment each year.

Biweekly Mortgage Savings: How to Save Thousands

Switching your mortgage to a biweekly payment schedule is widely considered one of the simplest, lowest-risk financial strategies to save tens of thousands of dollars in compound interest.

The standard mortgage is paid monthly, meaning you make 12 payments a year. By switching to a biweekly schedule—simply paying exactly half your monthly amount every two weeks—you effectively trick the calendar into helping you make one extra full principal payment every year, entirely painlessly.

How It Works (The 26 vs. 12 Rule)

There are 52 weeks in a year.

Monthly Plan: 12 payments per year.
Biweekly Plan: 52 weeks / 2 = 26 half-payments per year.

26 half-payments is equal to 13 full monthly payments. That one extra payment goes 100% toward your principal balance, reducing your interest for every future month.

Real Savings Example

Loan: $300,000 at 6.5% interest (30-Year Fixed)

Standard Monthly

Payment: $1,896 / month
Payoff Time: 30 Years
Total Interest: $382,000

Biweekly Plan

Payment: $948 / 2 weeks
Payoff Time: ~24 Years
Total Interest: ~$305,000

Savings: ~$77,000 + 6 Years of Freedom

Calculate Your Own Savings

Enter your loan balance and interest rate to see exactly how many years you can shave off your loan:

Run Biweekly Calculator

How to Start Biweekly Payments

You don't need a special program to do this. You have two options (verify savings with our extra payment mortgage calculator):

The Official Way: Call your lender and ask to switch to biweekly auto-draft.
Warning: Watch out for setup fees.
The DIY Way (Recommended): Take your monthly principal & interest payment, divide it by 12, and add that amount to your monthly payment as "Principal Only".
Example: If payment is $1,200. $1,200 / 12 = $100. Pay $1,300 every month.

Frequently Asked Questions

Can I do this with any mortgage?

Yes, almost all mortgages allow for prepayment without penalty. However, always check your loan documents for "prepayment penalty" clauses (rare in modern qualified mortgages).

Is biweekly better than investing?

It depends on your interest rate. If your mortgage rate is 7%, paying it off is a guaranteed 7% return. If your rate is 3%, you might earn more investing in the stock market (historically 8-10% returns). Biweekly payments are a "safe" investment.

Biweekly Mortgage Savings: The Math Behind the Magic