Bi-Weekly vs Monthly Mortgage Payments: Which is Better?

When it comes to paying off your mortgage, making bi-weekly payments instead of monthly payments can be a game-changer. By making half-payments every two weeks, you end up making one extra full payment each year, which goes directly toward your principal balance.

The Bi-Weekly Advantage

Faster Payoff

With 26 bi-weekly payments per year, you make the equivalent of 13 monthly payments. This extra payment reduces your principal faster, potentially shaving years off your loan term.

Interest Savings

Because you're paying down principal faster, you pay less interest over the life of the loan. On a 30-year mortgage, this can save you tens of thousands of dollars.

How It Works

Most lenders offer bi-weekly payment options. However, some may charge a fee to set this up. Alternatively, you can achieve similar results by simply making one extra principal-only payment each year.

Is It Right for You?

If your budget allows for slightly higher monthly cash flow requirements (since you're paying more frequently), bi-weekly payments are a smart financial move. Use our Bi-Weekly Mortgage Calculator to see your potential savings.