Biweekly Mortgage

Fixed-rate mortgage with loan payments every two weeks, rather than monthly as with most residential mortgages. The loan payment is one-half that of a regular 30-year mortgage, but the accelerated repayment allows the borrower to pay off the mortgage much faster than the mortgage with monthly amortization. The borrower makes 26 half-payments a year or one extra full-month payment. The result is accelerated buildup of equity and lower interest expense over the loan term. A biweekly 30-year mortgage, if held to maturity, is retired in approximately 20 years, yielding a savings of more than $142,000 in interest for every $100,000 borrowed. See also Alternative Mortgage Instruments.