How Biweekly Mortgage Payments Can Save You Thousands in Interest?
July 30, 2025
7 minutes
Paying off your mortgage faster sounds like a dream, right? But what if you could do it without refinancing, without paying extra fees, and without making radical changes to your lifestyle? That’s exactly what biweekly mortgage payments offer.
Here’s the kicker: most homeowners don’t realize this simple switch could save them tens of thousands of dollars in interest over the life of their loan. And if you’re on a fixed income or budget-conscious, this strategy can help you gain financial momentum with minimal disruption.
Let’s break it down together.
Key Takeaways:
- Biweekly mortgage payments can reduce total interest paid and shorten your loan term.
- This strategy works without refinancing or extra fees from most lenders.
- Aligning payments with your pay schedule can build discipline and savings.
- Ideal for borrowers seeking a simple way to accelerate mortgage payoff.
- Compliance-approved guidance with helpful links to trusted mortgage resources.
What Are Biweekly Mortgage Payments?
Instead of making one full mortgage payment per month (12 payments per year), biweekly payments split your monthly payment in half and pay every two weeks, resulting in 26 half-payments, or 13 full payments per year.
That extra payment? It goes straight toward the principal, reducing interest owed.
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Quick Example:
- $400,000 mortgage
- 6.5% interest
- Monthly: $2,528
- Biweekly: $1,264 every two weeks
- Interest saved: $80,000+ over the life of the loan
- Loan shortened: ~5 years
Why Biweekly Payments Work (and When They Don’t)?
Pros:
- Interest Savings: You pay less total interest thanks to more frequent payments.
- Faster Payoff: You build equity faster and finish your loan years early.
- Budget-Friendly: Aligns with biweekly paychecks for easy cash flow management.
Heads Up:
- Not all lenders accept biweekly plans without third-party setup (some charge fees).
- Ensure that extra payments are applied to the principal, not future interest.
- Skipping payments during tough months could result in the cancellation of the benefit.
Pro Tip: Always confirm with your lender how biweekly payments are applied.
How to Set Up Biweekly Mortgage Payments?
- Ask Your Lender: Do they allow in-house biweekly payments? Is there a fee?
- Manual Payments: If not, set up two automatic payments monthly (e.g., 1st and 15th).
- Budget for the Extra Payment: Save a little each month to cover the 13th payment.
- Track Your Progress: Use amortization tools or apps to watch your balance drop.
Buying a Home? Get up to 1.5% Cash Back at Closing
Get pre-approval first, then start exploring homes knowing you can receive up to 1.5% of the home price back at closing.
FAQs
Do biweekly payments hurt my credit?
Not at all. Consistent on-time payments may help boost your credit.
Can I switch back to monthly payments later?
Yes. You control your schedule. Just make sure your lender knows.
What if I get paid monthly?
Biweekly still works; you’ll just need to budget for the two smaller payments instead of one big one.
Is this better than refinancing?
It depends. Biweekly payments cost less and have fewer hurdles. Refinancing can lower your rate, but it comes with closing costs.
Will this work on all loan types?
Yes! Biweekly payments work on FHA, conventional, jumbo, Non-QM loans, and more.
Conclusion: Want to Pay Off Sooner Without Paying More? Start Here.
Buying a home is a big decision - and having the right information puts you ahead. But the real advantage comes from pairing smart research with a smarter way to buy.
When you use a reAlpha real estate company, you can be eligible to receive up to 1% of the home purchase price back as a credit at closing. Add reAlpha Mortgage, and that rebate can increase to up to 1.5% back, helping offset closing costs and keep more money in your pocket when it matters most.
The rebate is simple, transparent, and applied directly at closing - no complicated hoops, no delayed payouts. Just real savings tied to using a fully integrated homebuying experience.
See how much you could save:
- Check your eligibility
- Explore homes that fit your budget today.
- Your next move could come with thousands back at closing.
Estimate your savings → Rebate Calculator
This isn’t a gimmick. It’s a smarter way to buy. Ready to save thousands and own with confidence? Explore your savings with reAlpha Mortgage.
Required Disclosures:
- This content is for educational purposes only and does not constitute financial advice.
- Mortgage savings depend on loan amount, interest rate, loan term, and payment discipline.
- reAlpha and reAlpha Mortgage are affiliated partners.
- NMLS #1743790 (reAlpha Mortgage)
All financial calculations are estimates. Confirm with your lender or financial advisor.
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Article by
Rocky Billore is a mortgage industry leader and Chief Sales Officer with over two decades of experience across residential and commercial lending. Since entering the industry in 2004, he has been directly involved in funding more than $1.4 billion in loans. A recognized expert in VA and government lending, Rocky combines deep program knowledge with a data driven, relationship-first leadership style. His work focuses on building scalable sales organizations, developing high performing teams, and aligning technology with real world lending outcomes to improve the homeownership experience.