Biweekly Mortgage Payment Plans

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on July 05, 2023

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What Are Biweekly Mortgage Payment Plans?

A biweekly mortgage payment plan is a repayment strategy where borrowers make half of their regular monthly mortgage payment every two weeks, instead of the full payment once per month. This results in a total of 26 half-payments per year, equivalent to 13 full monthly payments.

Biweekly payment plans can help borrowers pay off their mortgages faster, save on interest costs, and better align mortgage payments with their pay schedules.

How Biweekly Mortgage Payment Plans Work

Structure of Biweekly Payment Plans

In a biweekly mortgage payment plan, borrowers split their monthly mortgage payment in half and make a payment every two weeks. This results in 26 half-payments per year, which is equivalent to 13 full monthly payments.

Impact on Loan Term and Interest

By making extra payments through a biweekly payment plan, borrowers can reduce their loan term and decrease the overall amount of interest paid on their mortgage.

  1. Reducing Loan Term: The extra payment each year reduces the principal balance more quickly, shortening the time it takes to pay off the mortgage.

  2. Decreasing Interest Paid: With a lower principal balance, less interest accrues, leading to significant savings over the life of the loan.

Pros and Cons of Biweekly Mortgage Payment Plans


Pay off the Loan Faster

Biweekly payment plans can help borrowers pay off their mortgage faster by making an extra full payment each year. This can help reduce the loan term by several years, allowing borrowers to own their home outright sooner.

Save Money on Interest

Because borrowers are making extra payments, the principal balance on the loan is reduced faster than it would be with a monthly payment plan. This means that less interest accrues over time, resulting in a lower overall cost for the loan.

Better Budgeting

Biweekly payments are timed to coincide with the borrower's paychecks, which can help with budgeting. Instead of making one large monthly payment, borrowers make smaller payments every two weeks, which can be easier to manage.

Lower Risk of Missed Payments

Biweekly payments can help reduce the risk of missed payments, as borrowers are making payments more frequently. This can help avoid late fees and protect the borrower's credit score.


Biweekly payment plans offer flexibility, as borrowers can choose to enroll in the plan at any time, or switch back to a monthly payment plan if needed.

Some lenders may also allow borrowers to make additional payments on top of the biweekly payments if they want to pay off their mortgage even faster.



Some lenders may charge fees to set up a biweekly payment plan, or may require borrowers to pay an upfront fee to enroll. These fees can add to the overall cost of the loan and may offset some of the savings from the biweekly payments.


Once a borrower enrolls in a biweekly payment plan, they are committed to making the payments every two weeks. This can be challenging for some borrowers who may have unexpected expenses or income fluctuations that make it difficult to make payments on a strict schedule.

Limited Availability

While many lenders offer biweekly payment plans, not all do. Borrowers may need to shop around to find a lender that offers this option.

Early Payoff Penalties

Some lenders may charge penalties for early payoff of the mortgage. If a borrower is using a biweekly payment plan to pay off their mortgage early, they should check to see if their lender charges early payoff penalties.

Opportunity Cost

If a borrower has other debts with higher interest rates, such as credit card debt or personal loans, it may be more financially advantageous to pay those debts off first before making extra mortgage payments.

Pros and Cons of Biweekly Mortgage Payment Plans

Setting up a Biweekly Mortgage Payment Plan

Lender-Offered Plans

Some lenders offer biweekly payment plans as an option for their borrowers. If available, borrowers should inquire about any fees or special requirements associated with the plan.

Third-Party Payment Services

For borrowers whose lenders do not offer biweekly payment plans, third-party payment services can set up and manage the plan. However, these services often charge fees and may require careful research to ensure they are reputable and trustworthy.

Do-It-Yourself Approach

Borrowers can also create their own biweekly payment plan by making an extra principal payment each month, equivalent to half of their regular monthly payment. This DIY approach requires discipline and careful tracking of payments but can save borrowers from incurring additional fees.

Alternatives to Biweekly Mortgage Payment Plans

Extra Principal Payments

Borrowers can make additional principal payments each month or periodically throughout the year to achieve similar results as a biweekly payment plan without the commitment to a fixed schedule.

Refinancing to a Shorter Loan Term

Refinancing a mortgage to a shorter loan term, such as a 15-year term, can also help borrowers pay off their mortgage faster and save on interest costs. However, refinancing may come with additional fees and may not be suitable for all borrowers.

Lump-Sum Payments

Applying a lump-sum payment, such as a tax refund or work bonus, towards the mortgage principal can also help reduce the loan term and interest paid. This approach offers flexibility, as borrowers can choose when and how much to contribute towards their mortgage.

Alternatives to Biweekly Mortgage Payment Plans

Tips for Managing a Biweekly Mortgage Payment Plan

Monitoring Your Mortgage Statement

Borrowers should regularly review their mortgage statements to ensure their biweekly payments are being applied correctly and that their principal balance is decreasing as expected.

Ensuring On-Time Payments

Making timely payments is crucial for maintaining a good credit score and avoiding late fees. Borrowers should set up reminders or automatic payments to ensure they never miss a biweekly payment.

Evaluating the Impact on Other Financial Goals

Before committing to a biweekly mortgage payment plan, borrowers should consider how it may affect their other financial goals, such as saving for retirement, building an emergency fund, or paying off other debts.

Tips for Managing a Biweekly Mortgage Payment Plan


Importance of Understanding Biweekly Mortgage Payment Plans

Understanding the benefits and drawbacks of biweekly mortgage payment plans can help borrowers determine if this repayment strategy is right for them. By paying off their mortgage faster and saving on interest costs, borrowers can achieve greater financial freedom and stability.

Making Informed Decisions on Mortgage Payment Strategies

Each borrower's financial situation and goals are unique, and the best mortgage payment strategy may vary accordingly.

By carefully evaluating their options and seeking guidance from qualified professionals, borrowers can make informed decisions about which mortgage payment plan will best serve their needs and help them achieve their financial goals.

Biweekly Mortgage Payment Plans FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, or check out his speaker profile on the CFA Institute website.

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