How Biweekly Mortgage Payments Work to Save You Money
Making biweekly mortgage payments is a powerful strategy that can help homeowners pay off their loans faster and save thousands in interest. Our biweekly mortgage calculator shows you exactly how much you can save by switching from traditional monthly payments to a biweekly schedule.
Standard Monthly Mortgage Payments
- • 12 payments per year (1 payment each month)
- • Each payment = 1/12 of annual amount
- • More interest accumulates over the loan term
- • Standard for most 30-year fixed mortgages
Biweekly Mortgage Payment Advantages
- • 26 payments per year (every 2 weeks)
- • Each payment = half of your monthly amount
- • Equivalent to making 13 monthly payments each year
- • Reduces principal faster, saving on interest
- • Shortens loan term by several years
Example Savings from Biweekly Payments:
| Loan Amount | Interest Rate | Term | Interest Saved | Time Saved |
|---|---|---|---|---|
| $300,000 | 4.5% | 30 years | $62,283 | 5 years 8 months |
| $200,000 | 3.75% | 30 years | $37,890 | 5 years 4 months |
| $400,000 | 5.0% | 30 years | $83,456 | 6 years 2 months |
Important Considerations for Biweekly Mortgage Payments:
- Lender policies vary - Some mortgage servicers offer formal biweekly payment programs (sometimes with setup fees)
- DIY option - You can simulate biweekly payments by making half-payments every 2 weeks without lender involvement
- Alternative strategy - Making one extra monthly payment each year provides similar benefits to biweekly payments
- Savings potential - The higher your interest rate and the longer your loan term, the more you'll save with biweekly payments
- Budget impact - Biweekly payments spread costs more evenly through the month for easier budgeting
Frequently Asked Questions
Is there a fee for biweekly mortgage payments?
Some lenders charge setup or processing fees for formal biweekly programs. You can avoid fees by managing biweekly payments yourself through your bank's bill pay system.
How much can I save with biweekly payments?
Savings depend on your loan amount, interest rate, and term. For a typical 30-year mortgage, biweekly payments can save $30,000-$80,000 in interest and shorten the loan by 4-8 years.
Can I switch to biweekly payments anytime?
Yes, you can start biweekly payments at any point in your mortgage term. The earlier you start, the more you'll save.