Biweekly Loan

A mortgage that requires principal and interest payments at two-week intervals. The payment is exactly half of what a monthly payment would be. Over a year's time, the 26 payments are equivalent to 13 monthly payments on a comparable monthly-payment mortgage. As a result, the loan will be amortized much faster than a loan with monthly payments.

A mortgage which requires principal and interest payments at two-week intervals. The payment is exactly half of what a monthly payment would be. Over a year's time, the 26 payments are equivalent to 13 monthly payments on a comparable mortgage loan. As a result, the loan will amortize much faster than loans with monthly payments.
Example: A 30-year mortgage for $300,000 at 8% interest requires monthly payments of $2,201.31. A biweekly loan for the same amount and interest rate requires a payment of $1,100.65 every two weeks. The biweekly mortgage will be fully amortized (paid off) within 23 years.