Bi-Weekly Mortgage
A mortgage with affordable payments and faster reduction of principal Let the calendar work for you! With a Biweekly Mortgage, you make half of your monthly mortgage payment every 14 days, instead of once a month. The result? By making smaller payments more frequently, you will pay off your mortgage sooner and save thousands of dollars in interest over the life of the mortgage. This is because each monthly half-payment is immediately credited to your account thereby putting the power of compound interest to work for you! For a 30 year fixed rate mortgage on a bi-weekly payment plan, the mortgage will be paid off in about 8 years early.
A Biweekly Mortgage gives you the stability of a fixed-rate mortgage and the convenience of having payments automatically deducted from your checking, savings, or other deposit account.
Bi-Weekly Mortgage Features
- By making more frequent payments, you pay off the mortgage much sooner. For example, with a Biweekly Mortgage, a loan that normally takes 30 years to pay off will take 22 years to pay off at current interest rates. You will then own the home debt free and have saved 8 years' worth of interest payments!
- Your mortgage payment is deducted automatically from your checking, savings, or other deposit account every 14 days. Depending on the year, that will mean 26 or 27 payments per year. Many people find this an easy way to manage payments, especially if they pay their mortgage at the same time as they receive a biweekly paycheck. The Biweekly Mortgage requires no additional monthly fees, either.