Bi-Weekly payments are a very popular mortgage payment process in the past several years is the biweekly payment. Payments are due on a biweekly basis (every two weeks) rather than once a month. The payment is calculated simply by dividing the monthly payment in half. Since there are 52 weeks in one calendar year, the biweekly mortgage provides a total of 26 payments or, 13 full-monthly payments in that calendar year. That 13th additional payment is applied toward paying down the principal balance.

The result is you save a tremendous amount of long-term interest over the life-of-the-loan; consequently the mortgage can essentially be paid off years early. With biweekly payments you can save thousands of dollars without having to qualify by refinancing or paying closing costs.

There are several independent companies offering this biweekly payment method and insist on you sending your mortgage payment to them. They, in turn, will take your payment and promise to pay to your mortgage company as mentioned above. Keep in mind, that whether you pay a mortgage company or a service provider; there’s usually a monthly service fee and/or one-time up front fee. Be wary of the lenders you choose that suggest paying for this payment process, without asking about the details.

Another way to enjoy significant interest savings without a biweekly payment is to simply prepay your mortgage that one extra payment per year. When making your mortgage payment, simply add 1/12 of the amount due to each payment or pay one extra payment at the end of the year. The result is the same; 13 payments were received at the end of a 12-month period.

Contact BeechTree Mortgage and we will provide a very accurate Good Faith Estimate and answer any questions regarding biweekly payments. Call now at 1-888-399-0520

Back To Mortgage Information Center
Ask A Question