Will Bi-Weekly Payments Benefit You?
Bi-weekly payments can significantly shorten the term of your loan. Use this calculator to explore how much money you could save on your mortgage by making payments every two weeks instead of every month.
What if I pay every two weeks?
See how much sooner your loan could be paid off, and how much interest you could save.
Sharing creates a link with the numbers you entered, so someone else can open the same results. Nothing you enter is saved on this site. These are estimates from the numbers you enter, not a loan offer or a rate quote. Your actual rate, payment and costs depend on your credit, the loan program and the property.
How Bi-Weekly Payments Work
Paying half your monthly payment every two weeks adds up to 26 half-payments a year, which equals 13 full payments instead of 12. That extra goes to principal, so you pay the loan off sooner and pay less interest overall.
Before you sign up
- Some bi-weekly programs charge setup or processing fees. You can get the same result for free by adding a little extra principal to each monthly payment.
- Ask your servicer how extra payments are applied, and make sure they go to principal.
- Keep an emergency fund first. Money paid into your home is hard to get back out quickly.
See how extra payments change your loan with the amortization calculator, or compare options on the fixed-rate loans page.
Bi-Weekly Payment Questions
Do I need my lender’s permission to pay bi-weekly?
Ask your loan servicer. Some offer a bi-weekly plan; others only accept monthly payments, in which case adding extra principal each month works the same way.
Will I pay a penalty for paying extra?
Most home loans made today have no prepayment penalty, but check your note or ask Peter to review it.
Is bi-weekly better than adding extra each month?
The savings are about the same if the total extra paid is the same. Adding extra monthly is simpler and usually free.
Should I pay my mortgage off early or invest the money?
It depends on your rate, your other debts and your goals. A financial advisor can help you weigh it, and Peter can show you the mortgage side of the numbers.