Investopedia.com defines a Bi-Weekly Mortgage as “a mortgage payment plan where payments are made every two weeks, as opposed to the more traditional monthly payment plan. Making mortgage payments every two weeks, as opposed to monthly, will result in the equivalent of one additional monthly payment being made each year. This extra payment is applied toward the principal balance of the mortgage, and will lead to substantial interest savings over the life of a long-term mortgage.”
Because there are 52 weeks in a year, a half-payment every two weeks results in 26 half-payments, or 13 full payments per year.
The bottom line is: Understand your mortgage, track your mortgage, control your mortgage, and you’ll likely get to the end more quickly.
If you have questions, or you’d like a spread sheet that allows you to track the data, along with extra payments, contact me. I’ll send you one that you can have and use at no charge.
For more useful information, visit my website at CALLDAVE.com.
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