The Biweekly Advantage

Paying half your mortgage every two weeks creates 26 half-payments a year — the equivalent of 13 full monthly payments. That 13th payment goes entirely to principal, shortening the loan and cutting interest. On a $300,000 mortgage at 6.5% for 30 years, a biweekly schedule pays the loan off years early and saves tens of thousands in interest. Check with your lender first: some charge a fee to convert, and a few apply the extra automatically — but many let you replicate the effect yourself with one extra principal payment a year at no cost.