Biweekly Mortgage Payment
Definition - What does Biweekly Mortgage Payment mean?
A biweekly mortgage payment is a mortgage that collects payment every two weeks rather than once a month. The monthly payment would be broken up in half and paid every two weeks; it would not be a double payment.
The benefit of
making a biweekly payment is that the interest is calculated differently and substantial savings can be made, decreasing a mortgage by several years due to
the decreased amount of interest accrued.
Justipedia explains Biweekly Mortgage Payment
The idea behind a biweekly mortgage payment is that it should decrease the interest that is accrued on the loan. Legally, there cannot be a double payment taken within any one-month period, so
the only way that a biweekly mortgage payment is possible is if the payment is split
in exactly half.
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