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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