Paying Off a Mortgage
5 min read
Biweekly Mortgage Payments: Do They Really Save Money?
Mike Starr
Founder, MortgageWizardTools · M.S. Organizational Management
Last reviewed: August 2026
Biweekly mortgage payments are a popular strategy to pay off your mortgage faster and save on interest. By paying half your monthly payment every two weeks, you make 26 half-payments per year — which equals 13 full monthly payments instead of 12. That one extra payment per year can save tens of thousands in interest.
How Biweekly Payments Work
- •Your monthly payment: $2,528
- •Biweekly payment: $1,264 (half of monthly)
- •Payments per year: 26 (every two weeks)
- •Total annual: $1,264 x 26 = $32,864
- •Normal annual: $2,528 x 12 = $30,336
- •Extra per year: $2,528 (one full extra payment)
How Much You Save
On a $400,000, 30-year, 6.5% loan:
| Monthly | Biweekly | |
|---|---|---|
| Payment Frequency | 12/year | 26 half-payments |
| Effective Annual | $30,336 | $32,864 |
| Payoff Time | 30 years | ~25 years |
| Total Interest | $510,000 | ~$398,000 |
| Interest Saved | — | ~$112,000 |
| Years Saved | — | ~5 years |
One extra payment per year saves about $112,000 and pays off 5 years early.
How to Set Up Biweekly Payments
Option 1: Through your lender
- •Some lenders offer biweekly payment programs
- •Watch for enrollment fees ($300-$500) — they eat into your savings
- •The lender may hold your payments and only apply them monthly
Option 2: DIY (recommended)
- •Divide your monthly payment by 12
- •Add that amount to each monthly payment
- •Result: same as biweekly, no fees, full control
Option 3: Manual biweekly
- •Set up auto-transfer every two weeks for half your payment
- •Verify your lender applies the extra to principal
Things to Watch For
- •Enrollment fees — some third-party services charge $300-$500
- •Holding periods — some services hold your biweekly payments and only apply monthly
- •Prepayment penalties — rare but verify your loan does not have them
- •Application to principal — verify the extra is applied to principal, not future interest
Is Biweekly Right for You?
Biweekly payments work best for borrowers who:
- •Get paid every two weeks (aligns with payment schedule)
- •Want a "set it and forget it" approach to extra payments
- •Can afford the slightly higher annual cost ($2,528 more per year)
If you want more control, the DIY approach (adding 1/12 to each monthly payment) achieves the same result without fees.
Key Takeaways
- •Biweekly payments add one extra full payment per year
- •This saves about $100,000+ in interest on a typical 30-year loan
- •Avoid fee-based biweekly services — the DIY approach is free
- •Verify your lender applies the extra to principal
- •Use our Biweekly Calculator to see your savings