Is Making Biweekly Mortgage Payments A Good Idea?
Jul 28, 2023 By Kelly Walker

If you're a homeowner or looking to become a homeowner soon, one of the most important decisions you'll make is how to pay off your mortgage.

Most people opt for monthly payments; however, many homeowners are considering biweekly payments instead. This method has its advantages—but is it worth it? In this blog post, we will help uncover the truth about making biweekly mortgage payments and provide insight into whether or not this is a good idea for everyone. Read on to learn more!

What is the Biweekly Mortgage Payment Plan

A biweekly mortgage payment plan is a strategy for paying off your home loan. Instead of making one large monthly payment, you split it into two payments and make them every other week.

This means that you're making an extra payment per year, which can help reduce the total cost of the loan in interest and shorten the life of the loan.

Pros and Cons of Making Biweekly Payments

Biweekly payments are an increasingly popular way for homeowners to pay off their mortgages. While this payment method is only sometimes suitable for some, it can be a great choice if you're looking to save money on interest and have more disposable income available each month. To help you decide whether this option is right for you, let's take a look at the pros and cons of making biweekly payments:


  • Making biweekly payments will help you pay your mortgage faster than monthly payments. By making one extra payment per year, you can cut years off the loan repayment period and save thousands of dollars in interest.
  • This payment method also allows you to have more disposable income each month since the amount paid is smaller than it would be with a single monthly payment.
  • Biweekly payments are easy to manage, as you only need to make half of your regular mortgage payment every two weeks instead of once a month.


  • The biggest downside of this payment method is that it requires discipline and dedication to keep up with the payments. If you miss a payment or need more money to make one, you could be hit with late fees or even put at risk of foreclosure.
  • You may also need to pay an extra monthly fee to your lender to process the biweekly payments. This can add up over time and reduce the savings you would otherwise gain from making these payments.
  • Additionally, some lenders don't offer this option, which may only be possible for some depending on their loan terms and other factors.

Is Making Biweekly Mortgage Payments A Good Idea

Making biweekly mortgage payments is increasingly becoming an attractive option for homeowners. Many wonder if this strategy could help them save money and if it's worth their time and effort.

Let's discuss the advantages of biweekly mortgage payments to help you decide if this strategy is right for your financial situation.

Building Better Credit

One main benefit of biweekly mortgage payments is that they help build better credit. Making regular payments on time can improve your credit score, which may open up opportunities for other types of financing, such as auto loans or home equity lines of credit. This could lead to lower interest rates and better loan terms.

Does It Remove Interest From Your Loan

Another advantage of biweekly mortgage payments is that they can reduce the interest you pay over the life of your loan. By paying half of your monthly payment every two weeks, you'll pay more than a traditional monthly payment in the same period due to compounding interest.

This means that instead of 12 payments per year, you'll have 26 payments in total, translating into an extra month's worth each year. Ultimately, this could save you thousands of dollars in interest over time.

How the Math Works

The math behind biweekly mortgage payments works like this: when making a regular mortgage payment, you pay a certain amount of interest each month. By making biweekly payments instead, the principal and interest payments are split into two monthly payments.

This results in a lower overall interest bill because interest is calculated on the remaining balance after every payment. As a result, your loan will be paid off quicker than if you had made regular monthly payments.

Making biweekly mortgage payments can help save money in the long run. Not only does it reduce the amount of interest paid over time, but it also has the potential to improve credit scores and open up other financing opportunities with better terms.

Factors to Consider When Deciding if a Biweekly

Mortgage Payment Plan Is Right For You

When paying off your mortgage, there is a lot to consider. Some factors should be considered before deciding if a biweekly mortgage payment plan is the best option for you.

Interest Rate

The most important factor to consider is the interest rate. With a biweekly payment plan, you are making an extra monthly payment every year, which can help reduce the interest you pay over the life of your loan.

In addition, some lenders offer a discounted interest rate for those who choose this option. It's important to compare rates and determine if it's worth it before committing to a biweekly mortgage plan.

Fees and Penalties

Another thing to be aware of is any fees or penalties associated with switching to a biweekly payment plan. Some lenders charge upfront fees or require additional paperwork that could make this option more costly in the long run. Understanding any fees associated with the plan is important before signing up.

Additional Finances

If you have additional money each month, consider if there are other more beneficial ways to use it instead of biweekly payments. For example, paying off high-interest debt or investing in a retirement account can reap better returns in the long run and offer more financial stability.

Budgeting Ability

Finally, evaluating your budgeting skills is important when considering a biweekly mortgage payment plan. If you can't consistently pay on time or need help saving for unexpected expenses, this option may not be ideal since you need more than one payment to avoid penalties or late fees.

Steps To Setting Up a Biweekly Mortgage Payment Plan

A biweekly payment plan may be a great option when paying off your mortgage. Here are the steps you should take to set up a biweekly plan:

  • Speak with Your Lender: Before changing how you pay your mortgage, speak with your lender. They can provide information on whether or not biweekly payments are an option and what fees, if any, come along with this type of payment plan.
  • Calculate How Much You Can Afford To Pay: Determine how much money you can afford towards your monthly mortgage and adjust accordingly based on any fees associated with extra payments.
  • Sign Up For Automatic Payments: Once you have established the amount you can afford, set up automated biweekly payments on your lender's website or through your bank.
  • Keep Track Of Your Progress: Lastly, keep track of your progress and adjust if needed. Biweekly mortgage payments can help you save money in the long run, but it is important to ensure that it still fits within your budget and lifestyle.


Does paying a mortgage biweekly save?

Yes, paying biweekly can save you money in the long run because of compounding interest and shorter loan terms. It also has the potential to build better credit if payments are made on time every month.

Do all lenders offer a biweekly payment option?

Only some lenders offer this option, which may only be possible for some depending on their loan terms and other factors.

Is it better to pay extra on a mortgage or invest?

It depends on your situation. Paying off high-interest debt or investing in a retirement account can provide financial stability, so it's important to research and determine what is best for you.


Making biweekly mortgage payments is becoming increasingly popular to save money and reduce interest over time. To determine if a biweekly plan is the right option, evaluate your budgeting skills, consider any fees associated with this payment plan, and speak with your lender. By taking the time to understand all aspects of this payment plan, you can make an informed decision that will help you reach financial success.