Potential Benefits of Bi-Weekly Payments
Pay Off Your Mortgage Faster: That extra payment each year directly reduces your principal balance, which can help you pay off your mortgage faster. Depending on your loan term and interest rate, this could shave several years off a 30-year mortgage.
Interest Savings: By paying down the principal faster, you reduce the amount of interest that accrues over the life of the loan. This can result in significant savings, particularly in the early years of the mortgage when interest makes up a larger portion of your payment.
Build Equity Faster: Since you're reducing your principal more quickly, you build equity in your home faster. This can be beneficial if you plan to sell or refinance your home in the future.