Skip to main content

Are Bi-Weekly Mortgage Payments Right For You?

Are Bi-Weekly Mortgage Payments Right For You?

For most homeowners, their mortgage payment is due once a month. However, there’s another payment option available that could significantly reduce the amount of interest you pay on your loan, called bi-weekly payments. 

What are Bi-Weekly Payments?

Bi-weekly payments are when you make half of your mortgage payment every other week versus making one full payment each month. 

So, instead of 12 monthly payments, you’re making 26 bi-weekly payments. This results in you making one additional mortgage payment per year that goes directly toward your loan’s principal. 

How Bi-Weekly Mortgage Payments Benefit You

By making one additional payment towards your mortgage principal each calendar year, you’ll experience two significant financial benefits.

  • Helps you pay off your mortgage quicker. By paying additional money towards the principal of your loan, you’ll be able to pay off your mortgage at a faster pace.
  • Allows you to pay less interest over the life of your loan. The fewer years you’re paying for your mortgage, the less interest you pay overall.

To illustrate how bi-weekly payments compare to traditional monthly payments, see the following example.

Assume your mortgage is for $250,000 at 4% APR for 30 years. The principal and interest portion of your payment will look like the following:




Payment Amount



Total Payments in a Year



Interest Savings



Years to Pay Off Mortgage




In the example above, bi-weekly payments allow you to reduce your loan term by four years and save nearly $30,000 in interest over the life of your mortgage. 

Considerations for Bi-Weekly Mortgage Payments

While there are significant financial benefits to bi-weekly mortgage payments, this doesn’t mean this repayment strategy is the right choice for everyone. Here are some things to consider before switching to bi-weekly payments:

  • It requires discipline and planning. First, it requires a certain amount of discipline to consistently plan for the months when you’ll need to make an additional payment. If you’re paid bi-weekly, this strategy might work perfectly for you. However, if your pay schedule varies, it could become a challenge to make the additional payment. So, budget accordingly. 
  • You could overextend your finances. You don’t want to find yourself overextended, or you could risk missing payments or becoming delinquent on your loan. Carefully consider your ability to budget and make ends meet before deciding this is right for you.
  • You forego other uses of your funds. Lastly, if you have a low-interest mortgage, it might make more sense to invest available funds where you can earn a higher return on your investment. It’s important to weigh both options to see which one works best in your favor financially. 

How to Switch to Bi-Weekly Payments

Switching to bi-weekly payments varies by lender. It may be as easy as contacting your financial institution. If your lender doesn’t allow you to change your payment terms, you can still take advantage of bi-weekly payments on your own. Here are two options you could use if your mortgage does not have pre-payment penalties:

  1. Monthly Payment. Divide your current principal and interest payment by 12. Then pay this amount each month toward your mortgage’s principal. If your monthly payment is $1,200, you will pay an extra $100 each month. 
  2. Annual Payment. You will save slightly less with this approach due to loan amortization, but simply make one extra principal and interest payment each year. If you receive an annual bonus, this approach could work perfectly for you.


CAMPUS Can Help!

Bi-weekly payments are a great way to pay off your mortgage faster and reduce the total amount of interest you pay. However, this strategy may not be suitable for everyone. 

If you’re interested in learning more about bi-weekly payments, please stop by any of our convenient service center locations or call 800-367-6440. Our mortgage team is here to answer all your questions and show you how this payment strategy could benefit you. To learn more about refinancing your mortgage, contact one of our Real Estate Representatives today.

More Resources

Mortgage Loan Amortization calculator

Mortgage Payoff Calculator

Mortgage Rates

By CAMPUS USA at 25 Aug 2021, 13:45 PM

Related Tags


Account Security Auto Loan Budgeting Campus News Credit Card Dollars and Sense Financial Advice Fraud Mortgage Personal Loan