Mortgage CalculatorBiweekly Mortgage Payments: Do They Save Money?
Paying half your mortgage every two weeks makes 26 half-payments a year, which equals 13 full monthly payments. That extra payment can cut years off a 30-year loan.
How the savings work
A standard 30-year loan has 12 monthly payments a year. A biweekly plan has 26 half-payments, so you pay one extra full payment each year. That extra money goes straight to principal, which lowers the balance faster and reduces the interest charged.
On a $320,000 loan at 6.5%, this typically pays the loan off about 4 to 5 years early and saves roughly $60,000 to $70,000 in interest. Your exact result depends on your rate and balance.
Check before you sign up
Some servicers charge a fee for biweekly enrollment, and some third-party programs take a fee to set it up. You can get the same result for free by paying one extra full payment each year, or by adding one-twelfth of your monthly payment to each monthly payment. Confirm that extra money is applied to principal, not held until the next due date.