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37 thoughts on “Biweekly Mortgage Payments: An Easy Trick to Do Them for Free”

37 thoughts on “Biweekly Mortgage Payments: An Easy Trick to Do Them for Free”

In other words, making two half mortgage payments a month probably won’t go well. But you can always call your lender or loan servicer and ask if you can pay your mortgage every two weeks just to be sure.

For the record, mortgages are generally calculated monthly (not daily), so making a half payment early won’t result in any additional savings. And 24 half payments is just 12 full payments, so you won’t do yourself any favors.

Assuming they do hang onto your partial payment, they may place it in a suspense account, where it will remain until enough money comes along to make at least one full payment.

So if you make another partial or full payment after sending the initial partial payment, they’ll only apply the funds if the total is enough to make one full payment.

This is why companies offer biweekly programs to avoid any misunderstanding with your lender if you send in two payments that are supposed to cover your full payment and a surplus toward principal.

If the lender/servicer’s website doesn’t make this abundantly clear, call before you pay to ensure your payments will be applied properly

When sending a payment that doesn’t correspond with your actual payment due, make sure it’s utterly clear that any additional amount will go toward principal and not escrow (usually you’re given a choice).

If so, you’ll want to find just your principal and interest payment for the purposes of calculating a biweekly payment.

This information is so valuable! thank you! I have one question, though. We just purchased a condo, but we only plan to stay in it for 5 or 6 years and the longest we will keep it for is ten, depending on the resale value. Do you think this method is worth it for us? How can it benefit us as short term owners, who also would like to profit of the property as much as possible?

Making extra (or larger) payments reduces the outstanding loan balance quicker, and as that balance decreases less interest is charged over time. So when it comes time to sell, even if just after 5-10 years, the difference between the eventual sales price and the outstanding loan amount will be greater than if you just stuck to standard monthly payments.

But would it be a significant amount compared to if we just saved the extra money (we’ll say $100) rather than putting it towards the mortgage? Or do you think it would be about the same?

Any old loan calculator will accomplish that

I’m just having trouble wrapping my head around the numbers. I will try and find a calculator online for it.

An early payoff calculator will show you the benefits…and it’s really personal preference to put more or less toward the mortgage.

Hello! Would you be able to tell me if some banks will actually amortize your biweekly payments biweekly or if they just hold on to the money and make a payment once a month. I’m assuming it would be more advantageous to the borrower if the biweekly payment can also be amortized biweekly. Do you know of any banks that offer this? I just got out of the military and I’m planning to use my VA home loan soon and would like to make good decisions as I make the investment. Thanks for your help Colin.

It would be more advantageous because earlier payments would knock out interest earlier and reduce future interest expense, but I doubt any banks would apply your biweekly payments that way because traditional mortgages don’t receive any (interest) benefit from paying earlier in the month.

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