Save Money on Your Mortgage: How Biweekly Payments Lower Monthly Costs
Paying off your mortgage faster and saving thousands in interest sounds like a dream — but it’s actually possible with a simple strategy: biweekly payments. In this blog post, we’ll break down how biweekly payments work, how they can save you money, and whether this strategy is right for you.
What Are Biweekly Mortgage Payments?
A traditional mortgage setup involves 12 monthly payments per year. With a biweekly payment plan, you split your monthly mortgage payment in half and pay half the amount every two weeks.
Since there are 52 weeks in a year, this results in 26 half-payments — or 13 full payments — instead of 12. That extra payment each year may not seem like much, but it can have a huge impact on your mortgage balance.
How Biweekly Payments Save You Money
Here’s what happens when you switch to biweekly payments:
1. Pay Off Your Mortgage Faster
That extra payment each year goes directly toward your principal balance, helping you pay off your loan sooner. Depending on the loan term, you could cut 4-6 years off a 30-year mortgage.
2. Reduce Total Interest Paid
By lowering your principal faster, you’ll reduce the amount of interest you owe over time. This can save you tens of thousands of dollars — especially with long-term loans.
3. Smaller, Easier Payments
Splitting your monthly payment in half can make budgeting easier, especially if you’re paid biweekly. It’s like spreading out the cost instead of paying one large chunk at once.
Is a Biweekly Payment Plan Right for You?
Biweekly payments can be a powerful tool — but they’re not for everyone. Here’s what to consider:
✔️ Great for you if:
• You’re comfortable with smaller, more frequent payments.
• You want to pay off your mortgage faster and save on interest.
• You’re paid biweekly and it aligns with your income schedule.
❌ It might not work if:
• Your lender charges fees for setting up a biweekly plan.
• You’re already focused on other financial goals like paying off higher-interest debt.
Pro Tip: If your lender doesn’t offer a formal biweekly plan, you can DIY it by making one extra full payment each year or adding a little extra to each monthly payment, specifying that the extra goes toward your principal balance — not future payments.
Final Thoughts
Biweekly payments are a smart, low-effort way to save money and pay off your home faster. That extra payment each year may seem small, but it adds up to significant savings over time.
If you’re curious whether biweekly payments are right for you — or want to explore other strategies to cut your mortgage costs — reach out to us at All-Around Lending. We’ll help you find the best path to owning your home faster and saving more money along the way.
Your dream home doesn’t have to come with a lifetime of payments. Let’s make it happen — together!