The Benefits of a Biweekly Mortgage Payment Plan

14 June 2025

Buying a home is a huge milestone, but let’s be real—it also comes with a pretty hefty financial commitment. And if you're like most homeowners, you're probably looking for a way to shave off some of those interest payments and pay off your mortgage faster. Well, say hello to the biweekly mortgage payment plan—a game-changing strategy that can save you thousands and help you own your home sooner than you ever thought possible.

But is it really as good as it sounds? Let’s break it down in plain, simple terms.

What is a Biweekly Mortgage Payment Plan?

A biweekly mortgage payment plan is exactly what it sounds like—you make a payment every two weeks instead of once a month. Now, at first glance, that might not sound like a big deal, but here’s where the magic happens:

- In a traditional monthly mortgage plan, you make 12 payments per year.
- With a biweekly plan, you make 26 half-payments per year—which is the same as 13 full payments annually.

That extra payment each year may not seem like much, but trust me, it adds up in a big way!

How Does It Benefit You?

Alright, let’s get to the good stuff. What’s in it for you? Here are some of the biggest benefits of switching to a biweekly mortgage payment plan.

1. Pay Off Your Mortgage Faster

This is the biggest selling point. Instead of taking 30 years to pay off your mortgage, a biweekly schedule can shave off several years (depending on the terms of your loan). Think about all the money you could save in interest alone!

Imagine you have a 30-year mortgage. By making biweekly payments, you could cut that down to 25 or 26 years, meaning you’ll own your home outright much sooner than expected.

2. Save Thousands in Interest

Interest is the silent killer of financial freedom. The more frequently you make payments, the less interest accumulates on your outstanding balance. That extra payment each year reduces the principal faster, so the lender has less to charge interest on over time.

For example, if you have a $300,000 mortgage at a 4% interest rate, you could save tens of thousands of dollars in interest just by switching to biweekly payments. Who wouldn’t want that?

3. It Aligns With Your Paycheck Schedule

Most people get paid biweekly anyway, so setting up an automatic biweekly mortgage payment plan can make budgeting smoother. Instead of scrambling to put together one big payment at the end of the month, you can break it into smaller, more manageable chunks.

This helps ensure you’re staying on track without feeling like you’re drowning in bills.

4. Build Equity Faster

Home equity is the portion of your home that you actually own (a.k.a. the difference between your home’s value and what you owe on your mortgage). The faster you pay down your loan, the quicker you build equity.

And why does this matter? More equity means:

- A higher resale value when you decide to sell
- A better chance of refinancing at a lower rate
- Access to home equity loans or HELOCs when you need them

So, in short, you’re increasing your financial flexibility while reducing debt—win-win!

5. Less Interest Paid Over Time

We touched on this earlier, but let's break it down in numbers.

Say you have a $250,000 mortgage at a 4% interest rate for 30 years.

- If you stick with monthly payments, you'll pay around $179,000 in interest by the time the loan is paid off.
- If you switch to a biweekly mortgage plan, that drops to about $151,000.

That’s a $28,000 savings just from making payments more frequently! That’s basically a brand-new car or multiple dream vacations.

6. Provides Discipline in Payments

If you’re the kind of person who’s tempted to splurge on things you don’t really need (hello, impulse Amazon purchases!), setting up automatic biweekly payments keeps you accountable.

You won’t even notice the extra payments after a while—it just becomes part of your routine. Meanwhile, you're getting closer and closer to owning your home free and clear.

Are There Any Downsides?

Like anything in life, there are a few things to consider before making the switch.

1. Not Every Lender Offers It

Some lenders don’t have a built-in biweekly payment option, which means you might have to set it up yourself. If that's the case, you can always make extra payments manually—just make sure your lender applies them correctly.

2. Some Lenders Might Charge Fees

Unfortunately, some mortgage companies charge fees to set up a biweekly schedule. Make sure to read the fine print before committing!

3. Cash Flow Considerations

Because you're making an extra mortgage payment each year, you'll want to ensure your budget can handle it. If you're cutting it close every month, this might not be the best option for you.

How Do You Set Up a Biweekly Mortgage Plan?

If you’re sold on the idea (and honestly, why wouldn’t you be?), here’s how to get started:

1. Check with your lender – See if they offer an official biweekly payment option.
2. Ask about fees – Some programs charge setup or processing fees—be sure you know what you’re signing up for.
3. Consider doing it manually – If your lender doesn’t offer biweekly payments, you can take matters into your own hands by making an extra lump-sum payment each year.
4. Set up automatic payments – If possible, automate your payments to avoid missed due dates.
5. Confirm how payments are applied – Make sure extra payments go toward the principal, not just future interest.

Final Thoughts

A biweekly mortgage payment plan is one of the simplest and smartest ways to pay off your home faster, save thousands in interest, and build equity quickly. It’s a small adjustment that can make a huge impact in the long run.

If your budget allows, this could be one of the best financial moves you’ll ever make. And who doesn’t want to own their home a few years earlier?

So, if you're serious about cutting years off your mortgage and keeping more money in your pocket, it’s time to consider making the switch!