mortgage

What is a biweekly mortgage?

 

What is a biweekly mortgage?

The Bankrate.com financial term of the day is: "Biweekly Mortgage."

Time for a little mortgage math. Take the typical home loan, and divide the payment in half. Now, instead of paying your mortgage once a month, consider making one of those half-payments every other week. That's the idea behind a biweekly mortgage, and it represents a slightly faster way to pay off a home loan so that you save on interest. You speed things up a little bit because you wind up making 26 half-payments per year. Paying your loan on a monthly basis is the equivalent of making just 24 half-payments annually.

A biweekly mortgage represents a way to squeeze in extra house payments to cut your loan term and your interest charges.

To find the best rates on home loans, visit the mortgage rate tables at Bankrate.com.

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