How does biweekly payment create an extra payment?

There are 52 weeks in a year. Biweekly payments = 26 half-payments = 13 full monthly payments. That 13th payment goes entirely to principal, dramatically reducing the loan term.

How much does biweekly payment save on a $300,000/7%/30-yr mortgage?

Approximately $73,000 in interest and 4.5 years off the loan term. You pay off in about 25.5 years instead of 30.

Are biweekly payment programs from lenders worth it?

Only if they are free. Some servicers charge $200-$500 to set up biweekly payments. Instead, simply divide your monthly payment by 12 and add that amount to each monthly payment as extra principal.

Biweekly Mortgage Payment Savings Calculator

Calculate interest savings and time reduction from making biweekly half-payments instead of monthly. Results in 13 full payments per year vs 12, cutting 4-6 years off a 30-year mortgage.

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Biweekly Mortgage Payment Savings Calculator

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Frequently Asked Questions

How does biweekly payment create an extra payment?

How much does biweekly payment save on a $300,000/7%/30-yr mortgage?

Are biweekly payment programs from lenders worth it?