Finance & Loan · Guide
Biweekly Mortgage Payments: Do They Really Save Money?
Paying half your mortgage every two weeks sneaks in one extra payment a year. That small change saves a surprising amount.
Want the answer for your own numbers? Use the free Mortgage Calculator — it does every step below for you.
How biweekly payments work
With a biweekly plan, you pay half your monthly payment every two weeks. There are 52 weeks in a year, so that is 26 half-payments — the same as 13 full monthly payments instead of 12. That one extra payment goes straight to the principal.
How much it saves
$300,000 at 6.5% for 30 years
Monthly payment: $1,896. Total interest over 30 years: about $382,600.
Biweekly: $948 every two weeks. The loan is paid off in about 24 years 2 months, with total interest of about $294,500.
Savings: about $88,000 and nearly 6 years
Savings by loan size
The saving grows with the loan. Every example below is a 30-year loan at 6.5%:
| Loan | Biweekly payment | Interest saved | Paid off in |
|---|---|---|---|
| $200,000 | $632 | about $58,700 | 24 years 2 months |
| $300,000 | $948 | about $88,100 | 24 years 2 months |
| $400,000 | $1,264 | about $117,500 | 24 years 2 months |
| $500,000 | $1,580 | about $146,900 | 24 years 2 months |
The payoff time is the same at every size, because the extra payment is always the same share of the loan. What changes it is the interest rate:
| Rate ($300,000, 30 years) | Interest saved | Paid off in |
|---|---|---|
| 5.5% | about $62,300 | 24 years 11 months |
| 6.5% | about $88,100 | 24 years 2 months |
| 7.5% | about $120,300 | 23 years 4 months |
The higher your rate, the more each extra dollar of principal saves.
Biweekly vs bimonthly vs one extra payment
| Method | Payments a year | Extra principal a year | Saves time? |
|---|---|---|---|
| Monthly | 12 | None | No |
| Bimonthly (twice a month) | 24 half-payments = 12 | None | Barely |
| Biweekly (every 2 weeks) | 26 half-payments = 13 | 1 payment | Yes |
| Monthly + 1/12 extra each month | 12 (slightly bigger) | 1 payment | Yes |
Note the difference between bimonthly (twice a month) and biweekly (every two weeks). Bimonthly adds up to the same 12 payments a year, so it saves almost nothing.
The easy alternative: one extra payment a year
You do not need a special biweekly program. Add one-twelfth of your payment to every monthly payment — $158 on a $1,896 payment — and mark it "extra principal". On the same $300,000 loan, that pays it off in about 24 years 2 months and saves about $87,000 in interest. Almost identical, and fully under your control.
Other ways to pay extra, compared
Biweekly payments are just one way to add principal. Here is how other amounts compare on the same $300,000 loan at 6.5% ($1,896 a month):
| Extra payment | Paid off in | Interest saved |
|---|---|---|
| $100 a month | 26 years | about $61,000 |
| Biweekly (about $158 a month) | 24 years 2 months | about $88,100 |
| $200 a month | 23 years 1 month | about $103,400 |
| $5,000 once a year | 19 years | about $158,000 |
| $500 a month | 17 years 6 months | about $179,800 |
Even $100 a month cuts four years off the loan. Pick an amount you can keep up comfortably — a steady small extra beats an ambitious plan you abandon.
The catches
- Fees. Some third-party biweekly services charge setup or per-payment fees. These can wipe out much of the benefit.
- Holding payments. Some servicers hold your half-payment until the second half arrives. That is fine — but make sure the 13th payment really goes to principal.
- Prepayment penalties. Rare on modern US mortgages, but check your loan papers.
- Other priorities. If you have high-interest debt or no emergency fund, deal with those first.
Is it worth it on a 15-year loan?
Less so. A 15-year loan already repays principal fast, so there is less interest left to cut. On a $300,000 15-year loan at 6.5% ($2,613 a month), biweekly payments save about $23,900 and finish about 1 year 10 months early. Useful, but far smaller than the 30-year saving.
Starting partway through
You do not have to start on day one. Switch to biweekly payments in year 10 of the same $300,000 loan, when about $254,300 is left, and you still save around $33,400 and finish nearly 3 years early. Starting late beats never starting.
How to set it up
- Ask your servicer whether it accepts biweekly payments directly, for free. Many do.
- If it does not, skip the third-party programs. Pay monthly and add one-twelfth extra instead.
- Mark the extra money as principal only, in writing or in the online payment form.
- Check your next statement. The principal balance should drop by the extra amount.
Try it on your own loan
The mortgage calculator has a payment frequency option. Choose "Biweekly — every 2 weeks, 26 a year" or add an extra monthly payment, and it shows the new payoff date and interest saved.
Frequently asked questions
On a $300,000 loan at 6.5% for 30 years, biweekly payments save about $88,000 in interest and pay the loan off nearly 6 years early, because they add one extra monthly payment each year.
No. Biweekly means every two weeks, which gives 26 half-payments or 13 full payments a year. Bimonthly means twice a month, which is only 12 full payments a year and saves almost nothing.
No. Your credit report shows whether the monthly payment arrived on time, not how you split it. The only risk is a late payment — if your servicer holds half-payments, make sure the full amount lands before each due date.
If you simply pay extra on your own, you can stop at any time. Third-party biweekly programs may have sign-up contracts and cancellation terms, so read them before you enrol.
Sources and further reading
- CFPB — What is a prepayment penalty? — checking your loan before paying extra
- CFPB — What is a prepayment penalty? — what to check before paying extra or refinancing