How Biweekly Payments Work (The Simple Math)
The magic of biweekly payments isn't complicated. It's just calendar math that works in your favor.
📊 Monthly vs Biweekly: The Difference
Monthly Payments
- • 12 payments per year
- • Full payment once a month
- • 30 years to pay off
Biweekly Payments ✓
- • 26 half-payments per year
- • = 13 full payments per year
- • 25-26 years to pay off
🎯 Why It Works
There are 52 weeks in a year. If you pay every 2 weeks, that's 26 payments. 26 half-payments = 13 full payments. That's one extra payment per year that goes straight to principal.
That extra payment compounds over time, reducing your principal faster, which means less interest accrues each month.
📱 Biweekly Savings Calculator
Here's how much you'd save on different loan amounts at current rates (7%):
| Loan Amount | Monthly Payment | Biweekly Payment | Interest Saved | Years Saved |
|---|---|---|---|---|
| $250,000 | $1,663 | $832 (x26) | $21,272 | 4.5 years |
| $350,000 | $2,329 | $1,164 (x26) | $29,781 | 4.5 years |
| $400,000 | $2,661 | $1,331 (x26) | $34,036 | 4.5 years |
| $500,000 | $3,327 | $1,663 (x26) | $42,545 | 4.5 years |
| $600,000 | $3,992 | $1,996 (x26) | $51,054 | 4.5 years |
*Based on 30-year fixed mortgage at 7% interest rate
How to Set Up Biweekly Payments (3 Methods)
Method 1: DIY Extra Payment
Don't change your payment schedule. Just make one extra principal-only payment per year.
How to do it:
- 1. Divide your monthly payment by 12
- 2. Add that amount to each monthly payment as "extra principal"
- 3. Or make one full extra payment in December
✅ Free, flexible, same savings!
Method 2: Lender Biweekly Program
Some lenders offer free biweekly payment programs. They auto-debit half your payment every two weeks.
Pros & Cons:
- ✅ Automatic—set it and forget it
- ✅ Aligns with biweekly paychecks
- ⚠️ Some lenders charge setup fees (avoid these!)
- ⚠️ Some only apply payments monthly anyway
Method 3: Third-Party Services
Companies offer to manage biweekly payments for you. We don't recommend this.
Why to avoid:
- ❌ Charge $300-$500+ setup fees
- ❌ May charge ongoing monthly fees
- ❌ You can do the same thing for FREE
- ❌ Some are outright scams
💡 Could Refinancing Save You Even More?
If your rate is above 7%, refinancing might save you more than biweekly payments. Check today's rates.
Compare Refinance Rates →Biweekly vs Other Payoff Strategies
| Strategy | Interest Saved* | Years Saved | Effort Level |
|---|---|---|---|
| Biweekly Payments | $34,000 | 4.5 years | 🟢 Easy |
| Extra $100/month to principal | $47,000 | 5 years | 🟢 Easy |
| Extra $200/month to principal | $82,000 | 8 years | 🟡 Moderate |
| 15-year mortgage instead | $280,000 | 15 years | 🔴 Higher payment |
| Refinance to lower rate | Varies | Varies | 🟡 One-time effort |
*Based on $400,000 loan at 7% over 30 years
⚠️ When Biweekly Payments DON'T Make Sense
You have high-interest debt
Credit cards at 20%+ should be paid first. Your mortgage is "cheap" debt by comparison.
You don't have an emergency fund
Build 3-6 months of expenses in savings before accelerating mortgage payoff.
You're not maxing retirement accounts
401(k) matches and tax-advantaged growth often beat mortgage prepayment.
Your mortgage rate is very low (under 4%)
Investing the extra money might earn more than 4% over time.
Frequently Asked Questions
How much can I save with biweekly mortgage payments?
On a $400,000 mortgage at 7% for 30 years, biweekly payments save approximately $34,000 in interest and pay off your loan 4.5 years early. The savings scale with your loan amount—larger loans save more.
Should I pay for a biweekly payment program?
No! Never pay for a biweekly program. Many companies charge $300-$500 to set this up, but you can achieve the same result for free by making one extra principal payment per year or adding 1/12 of your payment to each monthly payment.
Is biweekly the same as paying twice a month?
No! Biweekly (every 2 weeks) = 26 payments per year. Twice monthly (semi-monthly) = 24 payments per year. Biweekly gives you 2 extra half-payments, which is why it saves money. Twice monthly doesn't have the same benefit.
Will my lender allow biweekly payments?
Most lenders accept extra principal payments, but not all offer formal biweekly programs. If yours doesn't, just make one extra payment per year or add extra to each monthly payment—same result!
🏠 Ready to Save Thousands?
Start with biweekly payments, but also check if refinancing could save you even more at today's rates.
Compare Rates from 300+ Lenders →Related Guides
David Rodriguez
Senior Mortgage Analyst • 10+ Years Experience
David specializes in mortgage optimization strategies that help homeowners save thousands over the life of their loans.