Sunday, February 13, 2011 - By Relocation.com Staff
As the name suggests biweekly mortgage payments are paid every two weeks. The amount paid is half what would be paid in a month; however, there are two extra payments in a year resulting in the total of 26.
One entire extra month's payment is made each year, which significantly cuts down the interest paid over the life of the loan. The lender may charge to set up a biweekly mortgage. You could achieve the same impact by simply adding one extra payment to your loan each year.