Biweekly Mortgage

AAA

DEFINITION of 'Biweekly Mortgage'

A mortgage with principal and interest payments due every two weeks. A biweekly mortgage adds up to 26 payments per year, two payments more than a mortgage with semimonthly payments. These two extra payments significantly lower the interest payments paid over the life of the mortgage. In addition, biweekly payments are usually lower than semimonthly payments.

INVESTOPEDIA EXPLAINS 'Biweekly Mortgage'

A biweekly mortgage is a simple and effective way for borrowers to decrease their interest costs and pay off their mortgages sooner. In most cases, there are no additional fees or commissions associated with setting up a biweekly mortgage as opposed to a monthly mortgage.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Adjustable-Rate Mortgage - ARM

    A type of mortgage in which the interest rate paid on the outstanding ...
  3. Conventional Mortgage

    A type of mortgage in which the underlying terms and conditions ...
  4. Lien

    The legal right of a creditor to sell the collateral property ...
  5. Graduated Payment Mortgage

    A type of fixed-rate mortgage in which the payment increases ...
  6. Forbearance

    A temporary postponement of mortgage payments.
Related Articles
  1. 4 Steps To Attaining A Mortgage
    Credit & Loans

    4 Steps To Attaining A Mortgage

  2. Understanding Your Mortgage
    Personal Finance

    Understanding Your Mortgage

  3. Mortgages: How Much Can You Afford?
    Budgeting

    Mortgages: How Much Can You Afford?

  4. Home-Equity Loans: The Costs
    Options & Futures

    Home-Equity Loans: The Costs

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center