How biweekly payments work
Instead of one full payment each month, you pay half every two weeks. There are 52 weeks in a year, so that's 26 half-payments, or 13 full payments instead of 12. The extra payment goes entirely to principal, which shortens your loan and cuts the interest you pay.
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The formula
Biweekly payment = Monthly payment ÷ 2, paid 26 times a year
Interest is calculated on the lower balance after each payment, so savings build over time.
Example calculation
A $320,000, 30-year mortgage at 6.5%:
- Monthly payment
- $2,022.62
- Biweekly payment
- $1,011.31
- Time saved
- 5 yr 10 mo
- Interest saved
- $93,997
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Before you switch
- Ask your lender first. Some don't accept biweekly payments directly, and some third-party services charge fees.
- Make sure extra money goes to principal. Confirm the lender applies it right away rather than holding it.
- Try the simple alternative. Adding one-twelfth of your payment each month gets almost the same result.
Frequently asked questions
Is a biweekly mortgage worth it?
For most borrowers, yes, as long as there are no fees. It’s an easy way to pay one extra payment a year without noticing it much.
Does it hurt my credit?
No. As long as you pay on time, it has no negative effect on your credit score.
Should I invest the extra money instead?
It depends on your rate and goals. Paying down a 6.5% mortgage is a guaranteed 6.5% return, which is hard to beat risk-free.