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Can You Pay Your Mortgage Bi-Weekly Instead of Monthly?

Learn how paying your mortgage every 2 weeks can save interest and shorten your loan term. Set up a bi-weekly payment plan today.

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Video transcript

Yes, you can pay your mortgage every 2 weeks instead of monthly. This method is known as bi-weekly payments. By doing so, you make one extra payment per year, which can reduce your loan's term and save you money on interest. Contact your mortgage lender to set up a bi-weekly payment plan and ensure there are no prepayment penalties.

Questions and answers

  1. What are bi-weekly mortgage payments?

    Bi-weekly mortgage payments involve paying half of your monthly mortgage amount every two weeks, resulting in one extra full payment annually.

  2. How do bi-weekly payments save money on interest?

    By making an extra payment each year, bi-weekly payments reduce the principal faster, which helps lower the total interest paid over the loan term.

  3. Are there any penalties for making bi-weekly mortgage payments?

    Some lenders may have prepayment penalties, so it’s important to contact your mortgage lender to confirm if bi-weekly payments are allowed without penalties.

  4. How can I set up bi-weekly mortgage payments?

    You can contact your mortgage lender to inquire about setting up a bi-weekly payment plan, or use a third-party service that facilitates bi-weekly payments.

Related questions

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For more ways to manage your home loan and save money, explore our related videos on mortgage refinancing, prepayment strategies, and tips to improve your credit score.