Paying off Your Home: The Biweekly Mortgage

Yesterday’s post was on paying off your mortgage without refinancing.  The video below showcases another simple technique: the bi-weekly mortgage.  The concept is pretty simple.  You pay your mortgage every two weeks instead of once per month.  This way at the end of the year you end up paying an extra one to two payments towards your mortgage, lowering the total interest paid and the life of the mortgage.

Something to know is that many mortgage companies will not accept a bi-weekly payment. They may ask you to set up a bi-weekly payment plan for which they might charge you a $5-$10 monthly fee. One way to avoid that is to just have a different account where you have your bi-weekly payment held and then just send it over every time the amount in the account adds up to a full payment.