A mortgage company is not legally required to allow you to make bi-weekly payments, but many lenders do offer this option or allow you to set it up through third-party services. Here’s how it works and how it might benefit you:
How Bi-Weekly Payments Work
- Standard Monthly Payment: Normally, you make 12 monthly payments per year.
- Bi-Weekly Payment: Instead of one monthly payment, you make half of your monthly payment every two weeks. Since there are 52 weeks in a year, this results in 26 half-payments, which equals 13 full payments per year—one extra payment.