Paying off a mortgage can feel like a long journey, but what if there was a way to reach the finish line sooner and save money? Biweekly mortgage payments might be the simple trick you need. It’s easy to set up, and the benefits can make a big difference for homeowners. Let’s break it down in simple terms.
Instead of paying your mortgage one time in a month, biweekly payments mean you pay half of your monthly payment every two weeks. Over a year, this adds up to 26 half-payments—or 13 full payments. That’s one extra payment each year compared to the regular monthly schedule.
This extra payment might seem small, but it can have a big impact on your loan.
Making an extra payment each year means your loan gets paid down faster. For a 30-year mortgage, this simple change could cut years off your loan term. Imagine paying off your home 5 or even 6 years earlier—leaving you with more money and less stress.
Interest is what you pay the bank for borrowing money. The longer your loan lasts, the more interest you pay. By paying off your loan faster with biweekly payments, you reduce the total interest. This could save you thousands, or even tens of thousands, over the life of your loan.
Equity is the portion of your home you own. When you pay off your mortgage quicker, you build equity faster. More equity means more financial security and can help if you ever need to refinance or sell your home.
Not every lender offers biweekly payment plans, so ask your lender if they allow it. Some might charge a small fee, but you can also do it yourself by making an extra payment during the year. Just make sure the additional payment is applied to your loan principal.
Biweekly payments are an easy way to save money, pay off your home sooner and enjoy financial freedom. Talk to us to see if it’s the right fit for you. The sooner you start, the sooner you’ll be free from your mortgage!
