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Definition of 'Bi-Monthly Mortgage'
A mortgage plan where half the scheduled monthly payment is made twice a month. This plan is not to be confused with a bi-weekly plan where half the scheduled monthly payment is made every two weeks.
The difference between a bi-monthly and bi-weekly plan is subtle - a bi-weekly plan results in two more payments being made annually than on a bi-monthly plan. In other words, under a bi-monthly plan 24 payments are made annually, while under a bi-weekly plan 26 payments are made annually. This is the equivalent of 12 monthly payments for a bi-monthly plan and 13 monthly payments under a bi-monthly plan.
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