Bi-weekly payments are the cheapest way to pay off a mortgage years early with zero effort. Here is how the math works.
You pay half your monthly payment every two weeks. There are 52 weeks in a year, so that is 26 half-payments — the equivalent of 13 full monthly payments instead of 12. That one extra payment a year goes straight to principal.
On a $400,000 loan at 6.5%, bi-weekly payments save roughly $90,000 in interest and pay off the loan about 4 years early. The exact number depends on your rate and term — use the bi-weekly toggle on our calculator to see your own.
Not all lenders offer true bi-weekly programs. Some charge a setup fee or just hold your money until month-end, which defeats the purpose. The free alternative: make one extra monthly payment a year yourself, or add a little to each payment.
You can match most of the benefit by rounding your payment up or adding an extra $100 a month. Our calculator's extra payment field shows the savings instantly.
Reading is step one. Step two is running your own numbers — taxes, insurance, PMI and all.
Open the mortgage calculator