What is a biweekly mortgage payment plan?
A biweekly mortgage plan means you pay half your monthly mortgage payment every two weeks instead of paying the full amount once a month. Because the calendar has 52 weeks, you end up making 26 half-payments per year — the equivalent of 13 full monthly payments. That extra payment goes 100% to principal, which is why biweekly schedules accelerate payoff so dramatically.
How does the biweekly math work out?
52 weeks ÷ 2 = 26 biweekly periods. 26 half-payments = 13 full payments. A standard monthly schedule is only 12 payments per year. The extra payment is "smuggled in" by the calendar.
What is the cleanest way to set up biweekly payments?
Call your loan servicer first. Many will set this up for free and ensure each half-payment is correctly applied. Avoid third-party biweekly conversion services — they charge $300-$500 in fees for what your servicer will do for free.
What if my lender will not allow biweekly?
Just pay 1/12 of your monthly payment as extra principal each month. Mathematically identical effect.