FAQs About Biweekly Mortgage Payments
If you’re still curious and have more questions about how biweekly mortgage payments work, we’ve got you covered with these frequently asked questions.
How much faster do you pay off a mortgage with biweekly payments?
This will depend on your specific mortgage loan amount, your interest rate and the length of your repayment terms.
But generally speaking, biweekly payments can help you pay off your mortgage several years earlier than anticipated.
Can I split my mortgage payment into two payments?
Yes. There are a few ways to do this – the easiest being automating biweekly payments through your lender.
You can also do this on your own by making half of your monthly payment every two weeks.
Should I switch to biweekly mortgage payments?
This depends on your specific financial situation. Biweekly payments can help you pay your mortgage off faster, but you shouldn’t make the switch if it means you won’t have an emergency fund.
Also, you may want to consider this approach to pay down other debts with higher interest rates than your mortgage first.
Are there alternatives to biweekly mortgage payments?
Yes. If you want to lower your mortgage amount faster or reduce the amount of interest you pay, but biweekly payments aren't the right option for you, there are other options.
You could look into a refinance to get a lower interest rate or just pay a little more each month when you can. Additionally, you can use any extra funds that come your way (think tax return or bonus) to put toward your mortgage.
The Bottom Line: Making Biweekly Mortgage Payments Can Save You Time And Money
Your home is likely the biggest purchase you will ever make. Even with an interest rate in the single digits, this can often mean tens or hundreds of thousands in interest charges over the life of your repayment – a significant chunk of change you probably wouldn’t mind keeping in your pocket.
Whether you’re already a homeowner or are looking forward to buying a home in the future, making biweekly mortgage payments can reduce the overall amount of mortgage interest paid. Not only that, but you can pay off your home loan earlier than scheduled, eliminating that monthly mortgage payment and freeing up your budget even faster.
Luckily, lenders like our friends at Rocket Mortgage® make biweekly payments simple. Rocket Mortgage borrowers can set up biweekly mortgage payments for free online with no prepayment penalties or fees for setting up a revised payment schedule. You can automate the process and save yourself money with just a few quick clicks. If that sounds appealing and you’re in the market for a home, you can get started today with Rocket Mortgage.
