By arranging your mortgage payments to be paid in an accelerated bi-weekly way, you can actually see some significant savings in interest. These types of payments are determined by taking your monthly payment and dividing it by 2. You then make that half payment every 2 weeks. This means that since you’ll be paying a half-month’s payment for 26 payments in the year, it will be like you’ve made 13 monthly payments.
For this reason we caution you to budget well for this payment plan if you are not paid bi-weekly. 2 months of the year, 3 payments will be required.
