Pros and Cons of Biweekly Mortgage Payments
Paying off your mortgage faster and saving on interest sounds great, right? One popular strategy to make that happen is switching from monthly to twice-a-week mortgage payments.
But before you jump in, it’s important to understand exactly how biweekly payments work and whether they’re the right fit for your financial situation.
In this blog post, we’ll break down what biweekly payments are, how they can save you money, and the key pros and cons to help you make an informed decision.
What Are Biweekly Mortgage Payments?
Twice-a-week mortgage payments mean you pay half of your monthly mortgage amount every two weeks instead of one full payment per month.
Since there are 52 weeks in a year, you end up making 26 half-payments, or 13 full monthly payments one extra payment per year.
📌 Example:
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Monthly mortgage: $1,600
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Biweekly payment: $800
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Payments per year: 26
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Total paid annually: $20,800 instead of $19,200
This extra payment goes directly toward your loan principal, which can reduce your interest and shorten your loan term.
✅ Pros of Biweekly Mortgage Payments
1. Pay Off Your Mortgage Faster
The extra payment each year reduces your principal balance quicker, potentially knocking 4–6 years off a 30-year mortgage.
2. Save Thousands on Interest
Less principal = less interest. Depending on your loan size and interest rate, you could save tens of thousands of dollars over the life of the loan.
3. Build Equity Sooner
Faster principal reduction means you gain ownership of your home more quickly. This can be helpful if you want to refinance or tap into your equity.
4. Smaller, More Frequent Payments
For some people, it’s easier to budget for smaller payments every two weeks, especially if you’re paid biweekly.
5. Creates Financial Discipline
This payment method encourages consistent budgeting and prioritizes debt repayment—key steps toward financial freedom.
⚠️ Cons of Biweekly Mortgage Payments
1. Limited Flexibility
Once enrolled in a biweekly plan—especially if it’s automated—you may not have the flexibility to skip or adjust payments without fees or penalties.
2. Not All Lenders Offer It
Some lenders don’t allow biweekly payment options, or they may charge setup fees or administrative fees to manage the schedule.
3. DIY Requires Extra Discipline
If your lender doesn’t support biweekly payments, you’ll need to manually make extra payments. It takes effort to stay consistent on your own.
4. May Conflict With Monthly Budgeting
If you’re paid monthly or have irregular income, making payments every two weeks may complicate your cash flow management.
5. Minimal Short-Term Benefit
While long-term savings are real, the monthly impact isn’t dramatic. The payoff comes gradually over time, not overnight.
🧠 Is Biweekly Right for You?
Biweekly mortgage payments can be a smart move if:
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You’re financially stable with consistent income
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Your lender offers the option with little or no fees
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You plan to stay in the home for several years
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You want to become debt-free faster without refinancing
It might not be the best fit if:
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You live paycheck to paycheck
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Your lender charges high setup fees
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You’re planning to sell or refinance soon
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You need more flexibility in your payments
🛠️ How to Set Up Biweekly Payments
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Ask Your Lender
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Some offer free biweekly payment programs.
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Others may charge fees—ask before enrolling.
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Use a Third-Party Payment Service
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Be cautious—some services charge high fees.
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DIY Strategy (Without Formal Setup)
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Make your regular monthly payment.
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Then make 1/12 of your monthly payment as an extra principal payment each month.
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Same effect, no setup required.
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📊 Final Thoughts
Biweekly mortgage payments can be a powerful, low-effort strategy for paying off your home early and saving money in the long run. But like any financial decision, it’s not one-size-fits-all.
Evaluate your income, budget, and long-term goals before committing—and always check with your lender about their policies and any fees.
