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My Mortgage Blog

The difference between biweekly and accelerated biweekly mortgage payments is a question I receive often, and in fact - I've added it to my Mortgage FAQ's and share this information with all of my clients. If your budget allows you to add this bit of extra money onto your biweekly payment, it will help pay off your mortgage faster and save you money by decreasing your interest. Here's how it works;

Biweekly Payment:

Your biweekly mortgage payment is calculated by taking your monthly mortgage payment and multiplying it by 12 (for the number of months in the year) and dividing it by 26 (the number of biweekly payments in a year). So, if your monthly mortgage payment was $1000, it would look like this:

$1000 x 12 months = $12,000 per year
$12,000 / 26 payments = $461.54

Your biweekly mortgage payment is $461.54 and you'll pay $12,000 on your mortgage (principal and interest) for the year.

Biweekly Accelerated Payment:

Your biweekly accelerated mortgage payment is calculated by taking your monthly mortgage payment and dividing it by 2.

$1000 / 2 = $500
$500 x 26 = $13,000

Your biweekly accelerated mortgage payment is $500 and you'll pay $13,000 on your mortgage (principal and interest) for the year.

The Difference:

In this example, the difference is $1000 extra per year being paid on your mortgage, which goes straight to your principal. Over a typical 25 year amortization, it shaves off a couple of years from your mortgage lifetime so you pay off your mortgage faster, and saves you interest.