Homeowners everywhere are looking for smarter ways to save money—and time—on their mortgages. One strategy that keeps coming up is biweekly mortgage payments. But before you jump on the trend, you’re probably asking: how much do biweekly mortgage payments really save, and is it truly worth the change?
Let’s walk through the math, the mechanics, and the real-world impact.
Table of Contents
What Are Biweekly Mortgage Payments?
Biweekly mortgage payments involve making half of your monthly mortgage payment every two weeks, rather than the full amount once per month. Because there are 26 biweekly periods in a year, you end up making 13 full payments annually—one extra payment compared to the standard 12.
How a Standard Mortgage Payment Works
A standard mortgage payment includes:
- Principal
- Interest
- (and often) Taxes and Insurance (PITI)
Most borrowers pay this once a month. Over time, much of your early payments go toward interest.
Biweekly vs Monthly: What’s the Difference?
| Payment Schedule | Number of Payments/Year | Total Yearly Paid |
|---|---|---|
| Monthly | 12 full payments | $1,500 × 12 = $18,000 |
| Biweekly | 26 half-payments (13 full) | $750 × 26 = $19,500 |
That $1,500 extra per year chips away at your principal faster, reducing interest paid and shortening your loan term.
How Biweekly Payments Save You Money
Here’s the key: making that extra payment per year doesn’t just lower your principal. It compounds over time, reducing the amount of interest accrued on the remaining balance.
Biweekly Payment Calculator Example
Let’s say you have a $300,000 mortgage, 30-year term, at 6.5% interest. Monthly payments would be roughly $1,896. Using a biweekly mortgage calculator from Bankrate:
- Monthly plan = ~$395,280 in interest
- Biweekly plan = ~$330,760 in interest
- Interest savings: $64,520
- Loan paid off in ~25.5 years instead of 30
How Much Do Biweekly Mortgage Payments Really Save?
Savings will vary by loan size, interest rate, and how early you start. Here’s a general breakdown for a $300,000 loan:
| Loan Amount | Monthly Plan Interest | Biweekly Plan Interest | Savings | Time Saved |
|---|---|---|---|---|
| $300,000 | $395,280 | $330,760 | $64,520 | ~4.5 years |
A smaller mortgage or lower interest rate still brings savings—but on a reduced scale.
Do Biweekly Payments Reduce Your Loan Term?
Yes. By paying extra consistently, your mortgage ends 3–6 years earlier than scheduled, depending on your interest rate. This means you’re debt-free sooner—and save tens of thousands in interest.
Are the Savings Worth It?
Absolutely—if:
- Your lender doesn’t charge fees to enroll
- You won’t miss the smaller biweekly budget
- You plan to stay in the home long-term
In 2025’s market, where average mortgage rates hover near 6.5%–7.0% (Freddie Mac), this can be a strategic way to combat interest.
Can You Set Up Biweekly Payments Yourself?
Yes! Rather than paying for a biweekly plan, you can:
- Divide your monthly payment by two
- Make that amount every two weeks
- Apply it directly to principal (check with your lender)
Even better, make one full extra monthly payment once a year. You’ll achieve nearly the same savings without lender involvement.
Lender Fees and Hidden Costs to Watch
Some mortgage servicers charge:
- Setup fees
- Monthly service fees
- “Third-party” processing fees
Ask your lender directly, or consider third-party options carefully. According to the Consumer Financial Protection Bureau (CFPB), always avoid programs that don’t guarantee your extra payments go toward the loan principal.
Who Should Use Biweekly Payments?
- Homeowners with stable income
- Those planning to stay in their home long-term
- Borrowers with high interest loans
- People who want a set-it-and-forget-it strategy
When Biweekly Payments Don’t Make Sense
- If your lender doesn’t allow principal-only extra payments
- If your income varies unpredictably
- If you’re planning to refinance or sell within 5 years
How It Impacts Your Budget
Biweekly plans help some borrowers budget more easily with smaller payments. But it also means one month each year will have three payments—so plan accordingly.
Biweekly Mortgage vs Extra Monthly Payment
| Strategy | Effectiveness | Convenience |
|---|---|---|
| Biweekly | Very effective, structured | Automatic or manual |
| One Extra Payment Annually | Slightly less effective | Very flexible |
Mortgage Types That Benefit Most
- 30-Year Fixed Mortgages benefit most due to long terms
- FHA/VA loans also qualify
- ARMs (Adjustable Rate Mortgages)? Benefits vary based on how long you’ll keep the loan
Do All Lenders Allow Biweekly Schedules?
No. Ask:
- Will payments be held until due or applied immediately?
- Is there a fee?
- Can I automate it?
Some servicers hold partial payments in escrow until they accumulate, negating the benefit.
Pros and Cons of Biweekly Payments
Pros:
- Saves interest
- Pays off mortgage faster
- May align better with pay schedules
Cons:
- Some lenders don’t apply extra payments properly
- May come with service fees
- Requires consistent budgeting
Can Biweekly Payments Hurt Your Credit?
No. As long as your full monthly payment is covered on time, your credit score won’t be affected. However, always confirm how your servicer records partial payments—some systems flag incomplete payments.
Alternative Strategies to Pay Off Faster
- Refinance to lower rate or shorter term
- Make quarterly lump-sum principal payments
- Round up each monthly payment
- Use tax refunds or bonuses for annual extra payments
Check out NerdWallet’s Early Mortgage Payoff Calculator to explore custom strategies.
Success Stories: Real Homeowner Savings
- A Florida couple with a $350K mortgage saved $71,000 in interest
- A teacher in Ohio shaved 5 years off a 30-year loan just by automating biweekly payments
- A military family in Texas used one extra annual payment to drop PMI 3 years early
These results show the power of planning ahead.
FAQs About Biweekly Mortgage Payments
Is it better to pay your mortgage every two weeks or monthly?
Biweekly payments save more in interest over time and reduce loan term—if structured correctly.
Do all lenders offer biweekly payment plans?
No. You must verify with your loan servicer and ask about fees and payment handling.
Can I start a biweekly plan mid-loan?
Yes. The earlier, the better—but any time can help.
What’s the catch with biweekly mortgages?
Some lenders charge setup fees or hold your payments until the full amount is received.
Will this strategy affect my escrow payments?
No. Escrow amounts stay the same—only the principal and interest change.
Conclusion
So, how much do biweekly mortgage payments really save? In most cases—thousands of dollars and years off your loan. But the real value lies in the discipline of consistent extra payment toward principal.
Whether you do it manually or set it up automatically, biweekly payments are one of the smartest, low-risk strategies to build home equity faster and reduce your total loan cost.
