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Biweekly Payment Strategy



Mortgage Hack #19


How It Works: The biweekly payment strategy involves making a half-payment every two weeks instead of a full payment once a month. By doing this, you make 26 half-payments per year, which equals 13 full monthly payments instead of the usual 12. This extra annual payment helps reduce your principal balance faster, resulting in significant interest savings and a shorter loan term.


Benefits to Seller

  • Attractive to Buyers: Promoting this payment option can appeal to financially savvy buyers.

  • Reduced Foreclosure Risk: Buyers with better financial stability are less likely to default.

  • Maintains Property Value: A lower foreclosure risk helps keep the property value stable.


Benefits to Buyer

  • Interest Savings: The extra payment each year reduces the principal balance faster, leading to substantial interest savings.

  • Shortened Loan Term: This strategy shortens the mortgage term, allowing homeowners to achieve full ownership sooner.

  • Easier Budgeting: Splitting payments into more manageable biweekly amounts helps with budgeting, especially for those paid biweekly.

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