Bi-Weekly Mortgage Payments
If you’re like most people, you’re likely trying to figure out ways to pay off your mortgage faster or get ahead with as little effort as possible. One tried and true method for easily making one extra payment per year is to pay half of a mortgage payment every two weeks. You’ll make 1 additional mortgage payment per year by splitting your mortgage payment in half and paying that amount to your lender every two weeks. At the end of the year, you will have made one extra payment because you will have made 26 bi-weekly payments (13 full payments) versus making 12 monthly payments.
This payment option works for a few reasons:
You’re accustomed to paying every two weeks, so it won’t break the budget when you trick yourself into paying two times more than you would if making regular monthly payments.
Most lenders have an auto-payment plan so you won’t have to manually do anything on your end except ensure there are enough funds in your account for the payment every two weeks.
If you’re paid weekly or bi-weekly paychecks, then as the funds come in, some go out more efficiently.
Budgeting
If you sometimes have trouble sticking to a budget, this might be the solution for you. It somewhat stabilizes or removes the temptation to spend money that should go toward your mortgage, because it’s paid every two weeks rather than once per month.
