Bi-Monthly Mortgage

Filed Under »
Dictionary Says

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.
Investopedia Says

Investopedia explains 'Bi-Monthly Mortgage'

A bi-monthly mortgage plan will result in interest savings over the life of the mortgage. It does this by reducing the principal of the mortgage as each payment is received as opposed to the first payment of the month being held by the lender until the second payment of the month is received (at which point the a full monthly payment is made).

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Accelerated Payments

    A term ...
  2. Mortgage

    A debt ...
  3. Interest Rate

    The amount ...
  4. Lien

    The legal right ...
  5. House Poor

    A situation that ...
  6. Simple Interest Bi-Weekly Mortgage

    A bi-weekly ...
  7. Fixed-Rate Payment

    The amount due ...
  8. Delinquent

    The failure to ...
  9. Interest Rate Ceiling

    The maximum ...
  10. Fixed Interest Rate

    An interest rate ...

Articles Of Interest

  1. Make A Risk-Based Mortgage Decision

    Find out how to choose which mortgage style is right for you.
  2. Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.
  3. Find The Best Mortgage Rates

    Search and compare the best fixed and adjustable mortgage rates in your area with Bankrate.com.
  4. The Benefits Of Mortgage Repayment

    Buying a home may be the biggest debt you'll ever incur. Learn why you should retire it sooner, rather than later.
  5. Understanding The Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.
  6. Should I pay off my mortgage before I retire?

  7. Common Liabilities That Hurt Your Net Worth

    Every penny that you keep out of the liability side of the net worth equation essentially ends up on the asset side.
  8. Profit From Mortgage Debt With MBS

    Mortgage-backed securities can offer monthly income, a fixed interest rate and even government backing.
  9. How Lender Overlays Prevent Mortgages

    Loan applications are increasingly being rejected because of lender overlays.
  10. Protect Your Personal Assets

    A family limited partnership (FLP) can go a long way toward securing your family's property.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center