Professionals Real Estate 
Wondering how to save big on your mortgage? Discover the benefits of different payment frequencies!
Monthly Payments
The most common approach to mortgage payments is the traditional monthly schedule. With this method, you make one payment each month, typically on the same date. While this approach is straightforward and aligns with most people’s income schedules, it may not be the most cost-effective in terms of interest savings.
Biweekly Payments
Biweekly payments involve splitting your monthly mortgage payment in half and paying that amount every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments, which equates to 13 full payments annually. By making more frequent payments, you’ll pay off your mortgage sooner and reduce the total amount of interest paid over the life of the loan.
Accelerated Biweekly Payments
Accelerated biweekly payments take the concept of biweekly payments one step further. Instead of splitting your monthly payment in half, you pay an amount equivalent to one extra monthly payment each year. This additional payment goes directly towards reducing the principal balance of your mortgage, helping you pay off the loan even faster and save on interest.
Benefits of More Frequent Payments:
- Interest Savings: By making more frequent payments, you’ll reduce the principal balance of your mortgage faster, resulting in less interest accruing over time.
- Faster Loan Payoff: With accelerated payment schedules, you’ll shave years off your mortgage term, allowing you to own your home outright sooner.
- Financial Discipline: Biweekly or accelerated payment schedules can help you budget more effectively and stay on track with your mortgage payments.
Choosing the Right Strategy
The best payment frequency for you depends on your financial situation, goals, and personal preferences. Consider factors such as your income frequency, budgeting capabilities, and long-term savings objectives when deciding on a payment strategy.
