Are biweekly mortgage payments worth it?
Paying half your mortgage every two weeks means 26 half-payments, the same as 13 full payments a year. That one extra payment, applied to principal, is the entire source of the savings.
Savings on common loans
| Plan | Payment | Paid per year | Payoff time | Total interest |
|---|---|---|---|---|
| Monthly | $1,264.14 | $15,170 | 30.0 yrs | $255,089 |
| Biweekly (half every 2 weeks) | $632.07 | $16,434 | 24.2 yrs | $196,341 |
$200,000 loan at 6.5% for 30 years, assuming the lender applies each half-payment when received (interest computed per biweekly period). Savings: about $58,748 and 5.8 years.
| Plan | Payment | Paid per year | Payoff time | Total interest |
|---|---|---|---|---|
| Monthly | $1,896.20 | $22,754 | 30.0 yrs | $382,633 |
| Biweekly (half every 2 weeks) | $948.10 | $24,651 | 24.2 yrs | $294,512 |
$300,000 loan at 6.5% for 30 years, assuming the lender applies each half-payment when received (interest computed per biweekly period). Savings: about $88,122 and 5.8 years.
| Plan | Payment | Paid per year | Payoff time | Total interest |
|---|---|---|---|---|
| Monthly | $2,661.21 | $31,935 | 30.0 yrs | $558,036 |
| Biweekly (half every 2 weeks) | $1,330.60 | $34,596 | 23.7 yrs | $420,185 |
$400,000 loan at 7% for 30 years, assuming the lender applies each half-payment when received (interest computed per biweekly period). Savings: about $137,851 and 6.3 years.
The fee trap
Some third-party biweekly programs charge setup fees ($200–$400) or per-payment fees and hold your half-payments until a full payment accumulates. Fees can erase a meaningful slice of the savings, and holding funds removes the small extra benefit of paying early. Call your servicer and ask: do you accept biweekly payments directly, are there fees, and are extra payments applied to principal right away?
The DIY alternative
Add 1/12 of your monthly payment to every monthly payment, marked "apply to principal." On a $1,896 payment that's an extra $158 a month. The biweekly mortgage calculator shows both side by side.
When it's not worth it
- You carry high-interest debt (paying a 24% card first saves more).
- You don't have an emergency fund yet.
- Your mortgage rate is low and you'd rather invest the difference.
It fits biweekly pay perfectly
If you're paid every two weeks, sending half the mortgage from each check matches your cash flow, and the 13th payment comes from your two 3-paycheck months. See what to do with the third paycheck.
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Frequently asked questions
How much does a biweekly mortgage save?
Roughly 4–6 years and tens of thousands of dollars of interest on a typical 30-year loan, depending on rate and balance.
Is it better to pay biweekly or extra principal monthly?
The results are nearly the same. Choose whichever fits your cash flow and has no fees.
Does a biweekly mortgage hurt my credit?
No. As long as each monthly amount is paid on time, it is reported as normal on-time payments.