Biweekly Mortgage Payments: How to Pay Off Your Home Years Earlier

What if you could shave 4-5 years off your mortgage and save tens of thousands in interest—without dramatically changing your budget? That's the power of biweekly mortgage payments.

This simple strategy works because of basic math, not some financial trick. Here's everything you need to know about biweekly payments, including the smart way to set them up without paying unnecessary fees.

What Are Biweekly Mortgage Payments?

Instead of making one monthly payment, you pay half your monthly payment every two weeks.

Here's why this matters: There are 52 weeks in a year. Paying every two weeks means you make 26 half-payments per year. That equals 13 full payments instead of 12.

That extra payment goes straight to principal, accelerating your payoff dramatically.

Monthly payment schedule: 12 payments/year Biweekly payment schedule: 26 half-payments = 13 full payments/year

The difference is one extra payment per year, which doesn't feel like much month-to-month but compounds significantly over time.

The Math: A Real Example

Let's see how biweekly payments affect a typical mortgage:

Loan details:

• Loan amount: $400,000
• Interest rate: 7%
• Monthly payment (P&I): $2,661

Standard Monthly Payments

Biweekly Payments

The Savings

• Time saved: 4.5 years
• Interest saved: $90,204
• Extra paid per year: Just $2,661 (one additional payment)

Over 25 years, you pay an extra $66,525 in principal payments but save $90,204 in interest. Net benefit: $23,679 plus 4.5 years of your life without a mortgage payment.

How to Set Up Biweekly Payments

There are two ways to do biweekly payments. One is smart, one is not.

Option 1: Through Your Mortgage Servicer (Usually NOT Recommended)

Many servicers offer biweekly payment programs. Sounds convenient, right? Here's the problem:

• Monthly fees: Many charge $2-$10 per month for the "service"
• Setup fees: Some charge $200-$400 upfront
• Processing delay: Some don't apply the extra payment immediately

Over the life of your loan, those fees can eat into your savings significantly. A $5 monthly fee for 25 years is $1,500—money that could have gone to principal.

If your servicer offers fee-free biweekly payments with immediate principal application, go for it. Otherwise, use Option 2.

Option 2: The DIY Method (Recommended)

Here's how to get the same results without fees:

1. Take your monthly payment: $2,661
2. Divide by 12: $221.75
3. Add that amount to each monthly payment

You'll pay $2,882.75 per month instead of $2,661. Over the year, this equals the same extra payment as biweekly—but with several advantages:

• No fees from your servicer
• More flexibility—skip the extra if money is tight one month
• Simpler to track and manage
• Works with any servicer regardless of their program options

Important: When you send the extra amount, make sure it's applied to principal, not held in escrow or applied to future payments. Note "apply to principal" on your payment or call your servicer to confirm how to designate extra payments.

Alternative: Round Up Your Payment

Even simpler: round up your payment to the nearest $100 or $500.

If your payment is $2,661, pay $2,700 or $3,000 each month. The extra goes to principal and accelerates your payoff. This is less precise than the 1/12 method but easier to implement.

Biweekly vs Other Payoff Strategies

How does biweekly compare to other approaches?

Biweekly wins for most homeowners because it's easy to implement, doesn't require dramatic lifestyle changes, and produces substantial savings.

When a 15-Year Refinance Beats Biweekly

If rates are significantly lower than your current rate, refinancing to a 15-year mortgage might save more than biweekly payments. But refinancing has costs and locks you into higher required payments. Biweekly gives you the same effect with more flexibility.

Who Should Use Biweekly Payments?

Good Fit

Paid biweekly at work: If your employer pays you every two weeks, biweekly mortgage payments align perfectly with your income. Half your payment comes from each paycheck.

Long time horizon: If you just bought your home and plan to stay 10+ years, the compound interest savings are maximized.

Want forced discipline: Automating the extra payment removes the temptation to spend it elsewhere.

Stable income: You can comfortably afford the slightly higher annual payments.

Maybe Not the Best Fit

High-interest debt elsewhere: If you're carrying credit card debt at 20%+, that $221/month extra payment is better used paying off credit cards first. The math is simple: eliminate 20% debt before attacking 7% debt.

No emergency fund: Don't accelerate mortgage payoff if you don't have 3-6 months of expenses saved. Financial emergencies happen.

Planning to sell soon: If you're moving in 2-3 years, the interest savings won't be substantial. Keep your cash liquid instead.

Very low mortgage rate: If you locked in at 3% during the pandemic, you might be better off investing extra payments elsewhere. The stock market historically returns 7-10% annually.

Common Mistakes to Avoid

Paying Fees for Biweekly Programs

Third-party biweekly payment services and some servicer programs charge fees that erode your savings. The DIY method costs nothing.

Not Confirming Extra Applies to Principal

Some servicers apply extra payments to escrow or hold them for the next payment. Verify that your extra payment reduces your principal balance. Check your statement the following month.

Prioritizing Mortgage Over Higher-Rate Debt

It feels good to pay down your mortgage, but if you have 18% credit card debt, pay that first. Interest rate arbitrage is basic math.

Ignoring Liquidity

Your home equity isn't liquid. If you dump all extra cash into mortgage payments and then need money, you'll have to tap a HELOC or sell the house. Balance payoff acceleration with maintaining accessible savings.

Impact on Your Home Equity

Biweekly payments build equity faster, which creates options:

More HELOC Availability

The more equity you have, the more you can borrow with a HELOC if needed. After 5 years of biweekly payments, you might have access to $15,000-$25,000 more than with standard payments.

Better Position to Refinance

More equity means better loan-to-value ratios, which can qualify you for better refinance terms if rates drop.

Faster Path to Dropping PMI

If you're paying private mortgage insurance, reaching 20% equity triggers removal. Biweekly payments get you there faster, potentially saving hundreds per month.

Real Example: 5 Years of Biweekly Payments

Using our $400,000 mortgage example:

That extra $14,500 in equity could be the difference between qualifying for a HELOC or not.

Frequently Asked Questions

Do all lenders allow biweekly payments?

Most servicers accept biweekly payments or extra principal payments. Some servicers may have specific procedures—call and ask before starting. If they don't offer biweekly directly, the DIY method (extra 1/12 per month) works with everyone.

Can I switch back to monthly payments?

Yes, anytime. If you set up official biweekly through your servicer, contact them to cancel. If you're using the DIY method, simply stop making the extra payment. There's no commitment.

Is biweekly better or making one extra lump sum payment per year?

Mathematically, biweekly is slightly better because you're reducing principal slightly earlier throughout the year, which reduces interest accrual. But the difference is minor—maybe $1,000-$2,000 over the life of the loan. Do whichever is easier for you to maintain.

What if I can't afford it one month?

If you're using the DIY method, skip the extra payment that month. That's the beauty of this approach—it's flexible. If you're in an official biweekly program, you'd need to contact your servicer about pausing.

Does biweekly make sense with a 15-year mortgage?

It can, but the savings are smaller because 15-year mortgages already pay off faster. If you can afford biweekly on a 15-year, you'll pay off in about 12.5 years. But make sure the higher payments don't strain your budget.

Will my servicer automatically apply extra to principal?

Not always. Some apply extras to escrow, future payments, or hold in suspense accounts. Specify "apply to principal" with your payment, and verify on your next statement that your principal balance dropped by the full extra amount.

The Bottom Line

Biweekly mortgage payments are one of the simplest, most effective strategies for paying off your home early. One extra payment per year translates to 4-5 years off your mortgage and tens of thousands in interest savings.

The smart approach: DIY it by adding 1/12 of your payment to each monthly payment. You get all the benefits with no fees and maximum flexibility.

Just make sure the math makes sense for your situation. If you have high-interest debt, no emergency fund, or a very low mortgage rate, your extra dollars might be better deployed elsewhere first.

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Building equity faster? See what you can borrow with a HELOC when you need access to your home's value.