Paying mortgage biweekly: A smarter way to pay off your home

What you’ll learn ✅

— What biweekly mortgage payments are and how they differ from paying once a month

— Why some people save interest with biweekly payments

— How to set up a biweekly plan

— What the pros and cons of biweekly mortgage payments are

Many budgets already run on a biweekly schedule, but this doesn’t always align with the typical monthly mortgage bill. Splitting the monthly payment into two is a convenient option for homeowners, creating a more manageable structure.

Annually, biweekly installments add up to one extra payment per year. This can help settle your loan more quickly, but if your budget is already tight, a faster payoff plan may not make sense.

The following guide explains how paying mortgage biweekly works, which schedules you can use, and what these approaches change on your amortization schedule.

What are biweekly mortgage payments?

Biweekly mortgage payments follow a schedule where you pay every two weeks rather than once per month. There are two main types:

— True biweekly: You provide a half payment every two weeks, which is 26 installments per year.

— Biweekly program through a servicer: You send funds every two weeks to a servicer, and they manage how and when to pay.

As many people receive paychecks every two weeks, this method lines up with common finances. But there’s another benefit. There are 52 weeks in a year, which equals 26 biweekly payments. Since each one is roughly half your monthly amount, those 26 installments add up to about 13 full monthly payments in a year.

Some lenders let you send this extra payment exclusively toward your principal balance, which reduces the interest you pay over the life of the loan and speeds up the amortization schedule.

However, some homeowners make bimonthly payments on mortgage bills by paying twice per month rather than every two weeks, which adds up to 24 payments per year instead of 26. These people won’t have additional payments to lower their overall loan amount faster.

How do biweekly mortgage payments work in practice?

Paying your mortgage twice a month can save money in the long run because it lowers the principal and results in interest savings. Mortgage interest depends on your remaining principal balance, and when that balance drops, less of each future payment goes toward interest.

But the impact depends on payment application timing and your mortgage servicer. Some servicers make a payment as soon as each biweekly installment arrives, while others hold the first half payment and wait to apply the funds until the second half arrives. If the latter is true, your loan still officially has just one monthly payment.

Before switching schedules, confirm whether your servicer posts partial payments right away or hangs onto them until they receive the full amount.

What does paying a mortgage biweekly actually mean? Practical example

Let’s say you take out a loan for $300,000 and your monthly mortgage payment, including principal and interest, is $2,000. If you switch to a biweekly schedule, you’ll pay $1,000 every two weeks.

Over the year, you make 26 payments of $1,000, which totals $26,000. With monthly payments, you’d make 12 installments of $2,000, which comes to $24,000. That $2,000 difference is roughly one extra monthly payment per year.

If you put it toward principal, it helps pay off your mortgage early and reduce total interest. To make the difference clearer, here’s a table comparing monthly and biweekly payments side by side:

How to set up your biweekly mortgage payments

The setup is pretty simple, but following the right steps helps you avoid surprises like late fees and partial payment holds. Here are three tips to get you started:

— Contact your loan servicer: Ask your servicer if they accept biweekly payments and apply partial installments immediately. Check if they charge fees for a formal biweekly program.

— Set up automatic payments: If your servicer supports it, schedule half your monthly amount every two weeks through their system or your bank.

— Manually make payments when necessary: If automatic biweekly payments aren’t available, you can make monthly installments but add extra principal payments throughout the year. Some providers may not allow additional payments, so ask your lender about their restrictions.

Pros and cons of biweekly mortgage payments

Biweekly payments help homeowners pay off mortgages faster, but they aren’t the right fit for every budget and loan setup. Here are the upsides and downsides to help you decide whether this approach makes sense. 

Pros of paying a mortgage biweekly

Here are the main benefits of biweekly payments:

— Easier budgeting for biweekly paychecks: Smaller, more frequent payments are more convenient to manage for many homeowners.

— Faster equity growth: Biweekly installments help shrink your balance faster, building equity earlier. 

— Lower interest over time: Extra money reduces your principal faster, which can lower the total interest you pay on the loan and settle your debt sooner. And when you finance with Better, you access the best rates available, so you’ll save even more on interest.

...in as little as 3 minutes – no credit impact

Cons of paying a mortgage biweekly

Here are the potential drawbacks of biweekly payments:

— Potentially limited access: Not all servicers support true biweekly payments, so you may need to confirm timing or send installments manually.

— Less budget flexibility: Putting extra money toward your mortgage each year limits your cash for savings or debt payoff.

— Possible penalties: Some loans charge prepayment penalties, which can reduce or eliminate the savings from a biweekly schedule.

Alternatives to biweekly mortgage payments

If biweekly payments sound appealing but the logistics aren’t for you, you have other options that achieve similar results. 

Pay your mortgage twice a month

Making bimonthly payments on a mortgage typically means paying twice per month on set dates, such as the first and the fifteenth. This doesn’t create an extra annual payment the way a true biweekly schedule does.

It can still reduce interest if your servicer applies payments early and you add extra principal over time, but the built-in extra payment isn’t there annually.

Make an extra payment every year

One of the most straightforward alternatives is keeping your standard monthly installment and then adding one extra principal payment each year. This lets you boost your equity without managing biweekly schedules.

You can structure it as a single annual payment or divide it into smaller principal-only amounts, such as tacking on an extra $150 or $200 each month.

Refinance your mortgage

If your interest is higher than current rates, refinancing to a new loan can lower your monthly payments and reduce your total loan term.

It’s important to compare the new loan against your previous mortgage carefully to make sure the switch is worth it. Refinancing involves closing costs, qualification requirements, and a new repayment timeline, which could offset the savings.

Find a payment schedule that fits your budget

How often you pay mortgage bills is flexible, and biweekly is a smart choice for many homeowners. These smaller, more frequent payments are a convenient way to manage your loan. If you’re looking for lower mortgage payments, reach out to Better.

Better helps you explore options and manage the homebuying process confidently. Get pre-approved, lock in favorable terms, and secure a loan that fits your budget. We offercompetitive rates,and no prepayment penalties, so whether you pay monthly or biweekly, you can handle your finances stress-free.

Reach out to Better today, and start searching for your dream home.

...in as little as 3 minutes – no credit impact

FAQ

Do all mortgage lenders allow paying a mortgage biweekly?

No, not all lenders allow biweekly mortgage payments. Some loan providers and servicers accept true biweekly payments, while others accept extra installments but apply funds on a monthly cycle. Be sure to call your servicer and ask how they handle partial payments.

Can you switch back to monthly payments after paying your mortgage biweekly?

Yes, most servicers let you return to a standard monthly cadence if a biweekly plan no longer fits your budget. It’s still worth confirming the process ahead of time, as some providers charge a fee to switch schedules.

Are there any fees for paying your mortgage biweekly?

Some servicers charge setup or processing fees for biweekly payment programs, while others let you make extra payments at no cost. Check your loan terms or ask your servicer directly to understand what applies to your mortgage.