Biweekly Mortgage Payments: How They Work and Save You Thousands

What is a biweekly mortgage payment plan?

A biweekly mortgage payment plan means making a payment equal to half of your monthly mortgage payment every two weeks. Instead of 12 full payments per year, you make 26 half-payments, which adds up to 13 full monthly payments over 12 months.

The extra payment each year—because 26 half-payments equal 13 full monthly payments—goes directly toward your principal, helping you pay off your mortgage faster and reducing total interest compared to a standard monthly schedule.

• 26 half-payments per year equals 13 full monthly payments
• The extra payment each year goes directly toward principal
• Potential to shorten your loan term and save on interest

Sources: Community Savings Bank, Nova Bank, PrimeLending, Rocket Mortgage, Financial Mentor, Mortgage Calculator.org

How biweekly payments lead to an extra payment each year

The math is straightforward: a year has 52 weeks, so paying every two weeks results in 26 payments. Each payment is half your monthly amount, meaning you make the equivalent of 13 monthly payments per year.

That extra payment, often called the '13th payment,' is applied to your principal, which reduces your loan balance faster than a monthly payment plan.

• 52 weeks in a year ÷ 2 = 26 biweekly payments
• 26 half-payments = 13 full monthly payments
• The extra payment goes directly to principal

Sources: PrimeLending, Rocket Mortgage, Financial Mentor, Mortgage Calculator.org

Comparison: monthly vs. biweekly payments on the same loan

The table below compares the payment schedule for monthly and biweekly payments on the same loan terms (based on illustrative examples from sources and ). Note that actual savings depend on your specific loan amount, interest rate, and how payments are applied.

Sources: Mortgage Calculator.org, Rocket Mortgage, PrimeLending

Methods to set up biweekly payments: self-managed vs. third-party services

There are two common ways to set up biweekly payments: managing them yourself or using a third-party service. Some lenders, including Chase and Rocket Mortgage, offer biweekly plans without setup fees, but not all lenders do.

If you choose a third-party service, be aware that they may charge fees (potentially several hundred dollars) and may not apply payments as efficiently, which can reduce the benefits.

• Some lenders offer fee-free biweekly plans
• Third-party services may charge fees and may not be as efficient
• Confirm with your lender that payments are applied to principal

1. Check with your lender to see if they offer biweekly payments directly, and ask about any fees.
2. If you self-manage, make an extra principal payment each year (e.g., divide your monthly payment by 12 and pay that amount as an extra payment).
3. If you use a third-party service, confirm that it applies payments to principal promptly and understand all fees before signing up.

Sources: Rocket Mortgage, Chase, Financial Mentor, Mortgage Calculator.org

Pros and cons of biweekly payments

Biweekly payments can help you pay off your mortgage faster and save on interest, but they also have potential drawbacks. Here’s a balanced look at the advantages and disadvantages based on the evidence.

• Pros: Pay off mortgage early, save on interest, build equity faster
• Cons: Not all lenders offer biweekly plans; some may charge fees; third-party services may reduce benefits; prepayment penalties may apply

Sources: Rocket Mortgage, Chase, Mortgage Calculator.org, Financial Mentor

decision-criteria matrix

When deciding between monthly and biweekly payments, consider the following criteria. The table summarizes the main differences in payment schedules and the factors you should evaluate with your lender.

Sources: Mortgage Calculator.org, Rocket Mortgage, PrimeLending, Community Savings Bank, Nova Bank, Financial Mentor, Chase