How Bi Weekly Mortgage Payments Work. The concept of a twice-monthly payment is a bit misleading. By making payments every two weeks youll make 26 payments per year instead of 12.
With biweekly mortgage payments you make 26 half-payments a year. Comparisons Trusted by 45000000. Instead of taking 12 payments per year the bi-weekly payment plan asks for one payment.
When you pay your regular monthly mortgage payment you agree to perform a dozen annual payments toward the amount of principal borrowed.
There are 52 weeks in a year so this works out to 26 biweekly payments. A bi-weekly mortgage payment program is meant to short-circuit your loans amortization schedule. Comparisons Trusted by 45000000. Making biweekly mortgage payments is a strategy that can help you save a lot of money in interest and pay off your mortgage early.
