Biweekly Mortgage Calculator

Half the monthly payment every two weeks is 26 half payments a year — the equivalent of 13 monthly ones. The extra payment goes to principal, so the loan ends early and the interest bill shrinks. On 300000 at 6.5 % over 30 years that saves about 88122 and almost six years.

A biweekly mortgage is not a different loan, only a different rhythm on the same one. You pay half the monthly amount every two weeks, and because a year holds 26 fortnights rather than 24, you make the equivalent of 13 monthly payments instead of 12. That thirteenth payment goes entirely to principal, and every unit of principal repaid early cancels all the interest it would otherwise have accrued. This page shows what that is worth. On 300000 at 6.5 % over thirty years the monthly payment is 1896.20, so the biweekly one is 948.10; the loan clears about 70 months early and 88122 of interest never accrues. Two things drive the size of the saving. The rate matters because a higher rate makes each early repayment cancel more interest, and the term matters because a long loan leaves more interest ahead of you to avoid — a fifteen-year loan saves roughly a quarter of what a thirty-year one does. The loan amount does not change how many years you save; it only scales the money. What the number assumes is worth stating. One fixed rate throughout, every payment credited to the balance on the day it arrives, no taxes, insurance or fees. Some servicers hold a half payment until its partner arrives and credit the pair once a month, which removes the effect entirely, and third-party programmes sometimes charge enrolment or per-payment fees that eat the saving.