The Pros and Cons of Bi-Weekly Mortgage Payments

Many homeowners make mortgage payments once in one month. If you have a prepayment penalty, you can frequently chip away your overdue balance. A biweekly mortgage plan is good under the right circumstances. You calculate home loan EMI to determine how much you will pay monthly and whether you can afford the home loan interest rate. You can pay off the mortgage payment with the help of either of the two options. Consider a biweekly repayment plan strategy, where you can repay the loan every two weeks. With a biweekly repayment plan, as a borrower, you can make 26 half-payments in one year, equal to 13 total payments a year. It could be an apt option for those wishing to contribute more money towards repaying a loan or mortgage without committing a massive amount of money.

Pros and Cons of Bi-Weekly Mortgage Payments

Before opting for a biweekly mortgage repayment plan, it is necessary to weigh all the factors before deciding to repay your home loan mortgage biweekly. Like everything else, the biweekly mortgage repayment plan has merits and demerits. You can consult a financial advisor to supervise your mortgage obligations.

Advantages of Bi-Weekly Mortgage Payments

A few merits of Bi-Weekly Mortgage Payments are as follows:-

Repay Your Mortgage Quickly

Suppose you make one additional payment in a year. In that case, you can pay off your mortgage easily and quickly. For instance, a thirty-year mortgage normally takes thirty years to repay. But if you pay biweekly, you can make 13 yearly payments. 

Pay Less Interest and Save on Interest

The more your home loan interest rate is, the higher your borrowed amount, and the more you can save. Your lender might let you pay extra directly towards your loan. If that’s the case, you can repay your loan quickly, saving on interest payments over the years. The money you’ve saved from interest payments can go towards your retirement savings.

Build Equity

Homeownership is attractive because it lets you build equity. Equity is your financial stake in your residential property. Some ways to build equity quickly include making extra mortgage payments. The more you pay towards your mortgage, the more equity you will have in your home. Extra mortgage payments can fetch you more equity.

It’s Effortless to Budget

If you are paying your mortgage biweekly, a biweekly mortgage payment plan will make it effortless to budget. With an identical amount going towards your mortgage from every paycheck, you do not have to worry about balancing between the paychecks. Therefore, calculate home loan EMI and check where and how you can save money.

Additional Financial Discipline

If you contribute more money towards your debt repayment, it can aid you in establishing firming up smarter spending habits in other areas. Additionally, you can smooth out cash flow, which will assist you in managing your income and expenses effortlessly.

Disadvantages of Bi-Weekly Mortgage Payments

A few demerits of Bi-Weekly Mortgage Payments are as follows:-

High Housing Expenditures

Frequent mortgage payments indicate less money for other things. Saving money for retirement, repaying debt, or taking a family vacation can be better uses of your hard-earned money. 

Setup Fee

A few financial establishments will charge a setup fee for a biweekly mortgage payment plan. There might be linked charges for every transaction. A few banks offer these services for free, but it is best to contact your lender and confirm whether they charge a  setup fee.

Need You to Pay More Over the Year

Biweekly payments mean making an additional monthly payment in one year. You may require that money for something else. Thus, affording this extra drain on your finances may be daunting if you have a tight budget.

Possible Prepayment Penalty

Even though it is uncommon, a few mortgages may have a prepayment penalty if you repay the loan more quickly than what is mentioned in the repayment schedule. Hence, compare the home loan interest rate, read the terms and conditions meticulously, calculate home loan EMI, and contact your loan provider to know whether you are subject to paying the prepayment penalty fee.

Permanent Agreement

You agree to make biweekly payments when you enter into a biweekly mortgage payment plan. You can not switch back and forth. Therefore, it is advisable to refrain from making a binding agreement to pay extra, and you must think twice or thrice before committing to such plans. 


Suppose you wish to get a ‘set and forget it’s methodology to repay your mortgage quickly. In that case, a bi-weekly mortgage strategy can be a perfect strategy. Remember that nothing can stop you from paying extra towards your home loan every year if you select so. Paying your loan provider twice in one month is an automation matter compared to the savings you separately set aside to pay the home loan interest rate and the mortgage amount you opted for quickly. Whether you should opt for a biweekly mortgage payment plan is completely your decision. Consider the pros and cons while deciding. You can calculate home loan EMI before opting for a home loan or mortgage.

Note: Plagiarism results in the title.

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