Biweekly vs. Monthly Mortgage Payments

Word on the street is you can save an UNreal amount of money by making biweekly payments on your mortgage versus monthly payments. And, by the street, we mean the internet. And you know what they say, everything you read online is true.

This Man Paid Off His Home SEVEN YEARS Faster by Cutting His Payments in Half—NOT CLICKBAIT!!!!

You’ve probably scrolled past buzzy headlines like this on your social media feed and wondered if it’s actually possible to pay less in the long run AND pay your mortgage off faster.

The short answer is YES!, followed by a big ol’ asterisk. For the long answer, grab your reading glasses.

Local Copywriter Attempts Elementary-Level Mathematics—BRAVE!

A biweekly mortgage payment ≠ making the full payment every other week. That’d be UNrealistic. Instead, halve your monthly payment. That number is what you’re paying twice a month.

There are 12 months in a year, and there are 52 weeks in a year.

12 x 2 = 24… but that does not equal 24 payments biweekly.

Nope! The equation we’re looking for is 52 / 2 = 26. That gives us 26 mortgage payments (biweekly) compared to the standard 12 (monthly).

Finally, 26 / 2 = 13. That’s one more than twelve, which mean you make one extra payment per year. Boom.

Interested in LESS Interest? Try This One Simple Hack!

Not only are you speeding up how quickly you pay off your loan… you’re getting ahead of the interest. And not just by a little bit—you could save thousands this way.

Of course, this depends on your interest rate and your loan balance and terms. But theoretically, if you have a 30-year mortgage with an average interest rate, you could pay everything off in about 25 years and whittle down the amount of interest you’d wind up paying.

This blog is intended for educational purposes only. For details about specific products or services, see credit union for details. For questions about investments, please consult your financial advisor.