Where every dollar of a mortgage payment goes
Biweekly plans, examined
In one paragraph
Paying half a monthly payment every two weeks adds up to 26 half payments, or 13 full payments, a year instead of 12. The extra payment goes to principal, which is why the loan ends sooner. You can usually get the same effect yourself by adding one twelfth of a payment to each monthly payment.
Last reviewed against the primary sources listed below.
How the calendar creates the extra
A year has 52 weeks. Paying every two weeks means 26 payments; two halves make a whole, so that is 13 monthly payments.
Questions before you enroll
- Is there an enrollment or per-payment fee?
- Does the servicer apply each half payment right away or hold it until the full payment arrives?
- Can you stop without penalty?
The do-it-yourself version
Add one twelfth of your principal and interest payment to each monthly payment, marked as principal. Try it in the schedule tool.
Common questions about interest
Do biweekly payments really save interest?
Yes, mostly because they add one extra monthly payment per year to principal. A third-party fee can eat into the benefit.
Can I do biweekly payments without a program?
Usually yes. Adding one twelfth of a payment each month, marked as principal, gives a similar result.