A biweekly mortgage payment plan allows you to make half your mortgage payment every other week.
Doing so means you’re making 26 half-payments per year, which is the equivalent of 13 full monthly payments per year instead of 12.
This is a slight budget increase overall, but spreading it out over twice a month instead of once per month may make you feel it less. (Of course, each person is different, so you must decide for yourself if this approach is a good fit for your budget.)
The overall impact is impressive. If you start a biweekly payment plan the first month you start paying on a 30-year fixed loan, you can pay the loan off four to six years early and save thousands of dollars.
For example, if you have a 30-year fixed loan of $200,000 at 4.5 percent, a biweekly plan would save you $27,240 and you’ll pay your loan off four years and four months early.