The arithmetic
Twenty-six halves are thirteen wholes. A monthly payer sends twelve. The difference is one full principal-and-interest payment a year, plus a slightly faster balance decline between drafts in a true biweekly application.
The biweekly calculator charges interest every two-week period. It is not the same as simply dividing the monthly interest by two and ignoring the calendar.
Ask how the payment is posted
Some third-party services charge a fee to draft biweekly and then send a monthly payment. The fee can erase the benefit, and the posting may not match this model.
An extra one-twelfth of the payment added to principal each month is the plain version of the same idea, without a middleman.
| Schedule | Payments in a year |
|---|---|
| Monthly | 12 |
| Biweekly halves | 26, equal to 13 full payments |
Calculators
Related guides
Sources
Common questions
Will my due date change?
On a true biweekly application, the servicer's schedule changes. On a monthly posting, the due date can stay monthly. Ask before you enroll.
Does this include taxes?
No. The comparison is principal and interest. Escrow can still be drafted monthly.