What is '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.
BREAKING DOWN '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.