Save a Little at a Time with a Biweekly Mortgage

A biweekly mortgage is a mortgage where half a payment is due every two weeks. This is not only more budget friendly as many people get paid every two weeks anyway, but it actually offers some additional savings over the long term life of the loan. There are two months of the year when those who get paid every two weeks will get paid three times in one month, those months where people who get paid every week will get five paychecks in one month. The thing with bi weekly mortgage payments is that over the course of the year, people will make 26 half payments, equal to 13 monthly payments, which is an entire mortgage payment more than you would make by making a monthly payment every month of the year. This pays off the principle faster, and equates to an early payoff on your mortgage. The payoff however is not much earlier than it would be if you made regular monthly payments. The same early payoff can be achieved by making a larger payment every month, or by sending in additional payments where you can throughout the year. Some mortgage companies will offer the biweekly mortgage payment plan for free, but others may charge for this option.