What Is a Bi-Weekly Mortgage in Real Estate?

A bi-weekly mortgage is a payment schedule where borrowers make a half-sized mortgage payment every two weeks instead of one full payment each month. This results in 26 half-payments per year—the equivalent of 13 full monthly payments—which helps homeowners pay off their loan faster and reduce interest.

How a Bi-Weekly Mortgage Works

A bi-weekly payment schedule accelerates loan payoff by applying one extra month’s worth of payments each year—without the borrower having to consciously make an extra payment.

  • You make 1 payment every 2 weeks (26 payments per year)
  • Those equal 13 monthly payments instead of 12
  • The extra payment goes directly toward principal
  • This reduces your loan balance faster
  • Less interest is paid over the life of the loan

Some lenders offer bi-weekly payment plans directly, while others use third-party processors. Borrowers can also mimic bi-weekly payments manually by making one extra monthly payment per year.

Example of Bi-Weekly Mortgage Savings

Consider a homeowner with a $300,000 mortgage at a 6% interest rate on a 30-year term.

  • Monthly payment: ~$1,799
  • Bi-weekly payment: ~$900 every two weeks
  • Total payments annually: Equivalent to 13 monthly payments

Switching to bi-weekly payments can:

  • Reduce total interest by **tens of thousands of dollars**
  • Pay off the mortgage **4–6 years earlier**

Actual savings vary based on interest rate, remaining loan balance, and how early the borrower begins bi-weekly payments.

Bi-Weekly Mortgage vs. Monthly Mortgage

  • Bi-Weekly Payments – 26 payments per year; accelerates payoff and reduces interest.
  • Monthly Payments – 12 payments per year; standard schedule with no extra principal applied.
  • DIY Extra Payments – Homeowners can also manually make one extra full payment each year for similar benefits.

Bi-weekly payments benefit borrowers who want faster payoff without committing to irregular extra payments.

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