The Mathematics of Accelerated Bi-Weekly Mortgage Payments
Most homeowners make 12 monthly payments each calendar year. Under an accelerated bi-weekly payment schedule, you take your standard monthly mortgage payment, divide it exactly in half, and send that half-payment every two weeks.
Because there are 52 weeks in a calendar year, you make 26 bi-weekly payments.
26 half-payments = 13 full monthly payments.
That single extra payment every year goes 100% toward principal without altering your standard monthly cash flow, dramatically shortening amortization schedules.
Key Advantages of Bi-Weekly Mortgage Payments
- Pay Off 4 to 6 Years Early: On a standard 30-year fixed loan at current 6.5% - 7% interest rates, you retire the mortgage in approximately 24 to 25 years.
- Save Tens of Thousands in Interest: On a $350,000 loan, homeowners routinely eliminate over $45,000 to $65,000 in interest charges that would have otherwise gone to the lending institution.
- Seamless Paycheck Budgeting: Employees paid on an alternating Friday schedule can automatically align mortgage deductions with payroll deposit dates.