Should You Make Biweekly Mortgage Payments? Pros, Cons, and Math

Choosing the right repayment strategy can save you thousands of dollars in interest and shave years off your loan term. One of the most discussed methods is the biweekly payment schedule. But does it actually work for everyone, or is it just a banking gimmick?

How Biweekly Mortgage Payments Work

Standard mortgages are paid monthly. A biweekly plan shifts this to payments every two weeks. Because there are 52 weeks in a year, you make 26 half-payments. This equals 13 full monthly payments per year instead of the usual 12.

The "magic" happens with that extra annual payment. Since it goes directly toward the principal balance, you reduce the total amount owed faster. This accelerates the amortization process, meaning you pay less interest over the life of the loan and reach full ownership sooner.

Advantages and Potential Drawbacks

The primary benefit is clear: faster equity buildup. For a typical 30-year loan, switching to this schedule can often reduce the term by 4 to 6 years, depending on the interest rate.

However, there are a few caveats:

1. Payment Alignment: Your biweekly cycle may not align with your payroll or other monthly bills.

2. Bank Fees: Some lenders charge a setup fee or a monthly service fee to manage biweekly payments. If the fee is high, it may negate the interest savings.

3. Liquidity: Once you send extra money to the lender, you cannot easily retrieve it if an emergency arises.

Is it the Best Strategy for You?

If your goal is to be debt-free as quickly as possible, the answer to "should you make biweekly mortgage payments" is generally yes. However, you can achieve the same result without a formal plan. Simply divide your monthly payment by 12 and add that amount to your regular monthly payment as a "principal-only" contribution.

This "DIY biweekly" approach gives you the same financial benefit without paying lender fees or risking your cash flow.