How Bi-Weekly Payments Save Money
By making bi-weekly payments, you effectively make one extra monthly payment each year. This extra payment goes directly toward your principal, which reduces the amount of interest you owe over the life of the loan.
Over a 30-year mortgage, this simple change can often shave 4 to 6 years off your loan term and save you tens of thousands of dollars in interest.
Benefits of Bi-Weekly Payments
- Pay off your mortgage significantly faster
- Reduce total interest paid over the life of the loan
- Build equity in your home more quickly
- Budget more easily if you are paid bi-weekly