Biweekly vs. monthly mortgage payments
Scenario. A $350,000 loan at 6.76% over 30 years. "Biweekly" means paying half the monthly amount every two weeks — 26 half-payments, or 13 monthly payments' worth, per year.
| Monthly payments | True biweekly payments | |
|---|---|---|
| Payments per year | 12 monthly | 26 half-payments |
| Paid toward the loan per year | $27,269 | $29,541 |
| Payoff time | 30 yr | 23 yr 11 mo |
| Total interest | $468,072 | $356,237 |
| Interest saved | — | $111,835 |
Run “Monthly payments” → · Run “True biweekly payments” →
Why it works
There are 52 weeks in a year, so paying every two weeks means 26 payments. At half the monthly amount, that is the equivalent of 13 monthly payments instead of 12. That one extra payment a year goes entirely to principal, which compounds into roughly four to five years off a 30-year loan and tens of thousands in saved interest.
The catch
Many servicers do not apply biweekly payments as they arrive. They hold each half until the full monthly amount accumulates, then apply it — which removes the benefit entirely. Some third-party "biweekly programs" do this and charge a setup fee on top.
- Confirm your servicer applies biweekly payments immediately, not after holding them.
- If they do not, skip the program and instead pay an extra 1/12 of your payment each month, earmarked as principal.
- Never pay a third party a fee to set this up — you can do the same thing for free.
Frequently asked questions
Does a biweekly mortgage really save money?
Is biweekly better than just paying extra monthly?
Should I pay a company to set up biweekly payments?
Related calculators
Terms: Biweekly mortgage , Principal , Amortization