“Are Bi-Weekly Mortgage Payments Helpful?”

Source: The Nest (http://budgeting.thenest.com/much-biweekly-payments-shorten-30year-mortgage-29242.html)
Source: The Nest (http://budgeting.thenest.com/much-biweekly-payments-shorten-30year-mortgage-29242.html)

Loan servicers often send solicitations to homeowners touting the benefits of bi-weekly mortgage payments. Read below to learn why these may, or may not be good for you!


Bi-weekly payments do help you pay off your property quicker as you are essentially making 13 payments per year instead of 12 (bi-weekly = 26 half payments = 13 full payments). However, these notices usually have a catch in that the servicers generally charge a fee to set up these bi-weekly payments for you (or they charge an ongoing processing fee). Remember, loan servicers are typically striving to put more money in THEIR pockets, not yours.


If you want to accelerate the payoff of your loan by making extra loan payments, great! But, you can do this on your own. If you decide to make extra payments, just make sure you indicate your intentions to have this extra money go toward principle at the time you make the payment.


Let’s dive deeper to see if bi-weekly payments are good for you.



  • You can pay off your home quicker
  • You save thousands in interest
  • It is easy to implement



  • Loan servicers usually charge a fee (but you can do it on your own)
  • You may have better places to put the extra money (see below)



  • Payoff debt (especially consumer debt like credit cards, student loans and car loans)
  • Beef up your emergency savings
  • Contribute to retirement accounts (maybe your 401k at work with the company match)
  • Save for other goals (house down payment, kids’ college education, etc.)


Contact us if you have questions regarding bi-weekly mortgage payments, or any other topic related to home financing.


Chad Peshke is an experienced Financial Services Provider specializing in tax preparation, home loans and personal finance coaching. He holds a Bachelors Degree in Economics from the University of California in Santa Barbara and is licensed in tax preparation, loan origination, real estate and insurance. View all posts

Leave a Reply