What are biweekly mortgage payments?
Biweekly mortgage payments are made every two weeks rather than every month. Theoretically, this speeds up your payments to reduce interest and pay off your loan faster.
Biweekly payment options:
- A third party may charge you to receive this biweekly payment option
- Your lender may provide this as a payment option
- You may decide to handle this payment method by yourself, independent of a lender or 3rd party
As long as they are processed promptly, biweekly payments will reduce mortgage principal at a much faster rate.
Biweekly payments can be more budget-friendly.
While monthly payments add up to an even 12 full payments a year, biweekly payments actually add up to 13 full payments a year, which reduces your principle and essentially pays off your loan sooner.
Be sure to consult your lender before starting biweekly payments to determine whether your payments will be processed immediately or not. Some lenders hold the first biweekly payment until the remainder arrives and then process it as a full monthly payment. Be sure you do your research when choosing a third party lender.