Why biweekly payments work
A year has 52 weeks, so a bi-weekly schedule, paying half your mortgage every two weeks means 26 half-payments: 13 full payments instead of 12. That 13th payment goes entirely to principal, and the lower balance means less interest every month after. The magic is the extra payment, not the timing.
What it saves on a 30-year loan
| Loan | Rate | Monthly payment | Paid off sooner by | Interest saved |
|---|---|---|---|---|
| $250,000 | 6% | $1,498.88 | 5 yrs 5 mo | $61,389 |
| $400,000 | 6.5% | $2,528.27 | 5 yrs 10 mo | $116,343 |
| $600,000 | 7% | $3,991.81 | 6 yrs 3 mo | $204,851 |
Calculated with the same engine as the calculator above. Assumes extra principal is credited monthly, which is how most servicers apply it.
The free way to do the same thing
You don't need a biweekly program. Divide your monthly payment by 12 and add that amount as extra principal every month, or make one extra payment each year. The result is nearly identical, there are no fees, and nothing sits in a suspense account. If you're paid every two weeks and like the rhythm, ask your servicer whether they accept biweekly payments directly and apply them as they arrive.
Three versions of "biweekly" and how they differ
- True biweekly: the servicer applies each half-payment as it arrives. This saves slightly more than the calculator shows, because principal drops a couple of weeks earlier.
- Held half-payments: the servicer or a third-party program holds each half until a full payment builds up. Savings come later, and fees can cancel them out.
- One-twelfth extra each month: the do-it-yourself version below. It's what the calculator models, and it works on any existing mortgage, however far into the loan you are.
Questions people ask
How much do biweekly mortgage payments save?
Paying half your payment every two weeks adds up to 26 half-payments, or 13 full payments, a year. On a 30-year loan that one extra payment a year typically cuts four to six years off the term, depending on your rate.
Are biweekly payment programs worth the fees?
Often not. Some third-party programs charge a setup fee and a fee on every withdrawal, and some hold your half-payments until a full payment builds up, so the timing gain is small. You can get nearly the same result for free by adding one-twelfth of your payment to each monthly payment.
Does my lender apply biweekly payments right away?
It depends on the servicer. Many only apply full payments, so half-payments sit in a suspense account until the other half arrives. Ask how they credit partial payments and extra principal before you start.
Is biweekly the same as twice a month?
No. Twice a month is 24 half-payments a year, which equals your normal 12 payments. Every two weeks gives 26, and those two extra half-payments are what shorten the loan.
For education and estimates only; not financial, tax or legal advice. Your lender's figures are final. See How we calculate.