A biweekly mortgage plan collects half of the normal monthly payment every two weeks. Because there are 26 two-week periods in a year, the total equals 13 full monthly payments rather than 12, which can reduce principal faster when the servicer applies the funds correctly.
The potential savings come from making one extra full payment each year, not from the word “biweekly.” Many homeowners can create a similar result by making one additional principal payment annually or adding one-twelfth of a regular payment to each monthly payment, without paying a third-party enrollment fee.
A true every-two-weeks schedule produces:
Twice-monthly payments are different. Paying on the 1st and 15th creates 24 half-payments, which equals only 12 full payments. It does not automatically create an extra annual payment.
Normal monthly principal-and-interest payment: $2,400
Every-two-weeks amount: $1,200
Annual total: $1,200 × 26 = $31,200
Standard annual total: $2,400 × 12 = $28,800. The difference is $2,400, equal to one extra monthly payment.
This example excludes taxes, insurance, mortgage insurance, HOA dues, servicing rules, and fees. The actual interest and payoff effect depends on the loan balance, interest rate, remaining term, timing, and how the servicer applies extra funds.
| Method | How it works | What to watch |
|---|---|---|
| Servicer-approved biweekly plan | Half of the periodic payment is drafted every two weeks under the servicer’s program | Enrollment fees, draft timing, partial-payment handling, cancellation, and principal application |
| One extra payment each year | A separate full payment or principal-only amount is sent annually | Budgeting for a larger one-time amount and providing principal instructions |
| Monthly extra principal | One-twelfth of a payment or another chosen amount is added monthly | Confirm the extra amount applies to principal and does not merely advance the due date |
| Irregular extra payments | Bonuses, refunds, or other available funds reduce principal when appropriate | Preserve reserves and avoid committing money needed for higher-priority goals |
Interest on a typical fixed-rate mortgage is calculated using the outstanding principal under the loan’s terms. When an eligible extra payment reduces principal, future interest is calculated on a lower balance. The scheduled principal-and-interest payment usually remains unchanged, so more of later payments goes toward principal and the loan can finish earlier.
An extra principal payment generally does not reduce the required monthly payment unless the lender approves a mortgage recast, modification, or refinance.
A third-party company may offer to collect biweekly payments and forward them to the servicer. Before enrolling, determine:
The Consumer Financial Protection Bureau has previously taken action against a biweekly payment company over misleading savings claims and significant fees. Paying a company is not necessary to make extra principal payments on many mortgages.
Extra mortgage principal is difficult to access again without selling, refinancing, or obtaining a home-equity loan. Before accelerating the mortgage, compare:
Read Should You Pay Off Your Mortgage Early? for the broader decision.
No. Twenty-four half-payments equal 12 full payments. A true every-two-weeks schedule creates 26 half-payments, equal to 13 full payments.
Not necessarily. A partial payment may be returned or held in a suspense account until it equals a full periodic payment. Ask how the servicer handles it.
Often yes. Review the loan and servicer instructions, then confirm that the extra amount is applied to principal.
Generally no. They reduce the balance and can shorten the loan, but the contractual payment usually remains the same unless the loan is recast, modified, or refinanced.
That depends on the agreement. Confirm cancellation timing, fees, held funds, and the return to normal monthly drafting before enrolling.
Principal payments are not interest deductions. Paying principal faster generally reduces future interest. Ask a qualified tax professional how mortgage interest rules apply to your situation.
Compare a formal biweekly plan with free monthly principal payments, one annual extra payment, and your other financial priorities.
Reviewed September 2, 2026 by Michael Shotnik, Broker | Owner, Milestone Home Mortgage, LLC, NMLS 218281. Educational information only and not financial or tax advice. Payment application, suspense accounts, fees, prepayment terms, interest calculations, and servicing procedures vary. Confirm written instructions with the mortgage servicer.
Updated August 31, 2026
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