The Pros and Cons of Bi-Weekly Mortgage Payments
Published on February 19, 2018

The Pros and Cons of Bi-Weekly Mortgage Payments

Are you wondering how to pay off your mortgage quicker without officially shortening the length of your loan? If so, bi-weekly mortgage payments may be a good choice. They’re convenient, can be automated, and can help you save thousands of dollars in interest. To help you decide if this is the right payment strategy for you, here are some of the pros and cons of bi-weekly mortgage payments.


A few of the most notable benefits bi-weekly mortgage payments can offer include:

  • Easier budget management
  • Ability to pay your mortgage off faster
  • Potential to save money on interest

If you’re paid on a bi-weekly basis, it might make sense for you to split your mortgage payment into two manageable payments each month instead of one big monthly payment. Paying half of your mortgage bi-weekly makes it easier to manage your monthly budget.

Due to the unique structure of bi-weekly loans, you end up making one extra payment each year. Most or all of that extra payment goes to principle (if the lender sets it up that way). Although it may seem small, that extra payment can go a long way toward paying down your mortgage each year and will help you pay off the balance quicker.

Finally, you can potentially save thousands of dollars in interest over the life of your loan. To put yourself in an even better financial situation, invest or put away the extra money you would have spent on interest so you can have a more comfortable retirement.


There aren’t many drawbacks to setting up bi-weekly payments, but here are a few worth mentioning:

  • It’s an official agreement
  • There may be a fee to set it up
  • You’re required to pay more each year

As with any loan agreement, a bi-weekly mortgage setup is official and can’t be changed from month to month. That means you need to be comfortable having half of your mortgage come out of each paycheck instead of having the entire mortgage come out of one paycheck every month.

Some financial institutions may require a fee to set up your bi-weekly payment plan. Depending on the amount of the fee, it may or may not be worth it to change your mortgage to a bi-weekly setup.

As mentioned earlier, bi-weekly mortgage payment plans require you to make one extra payment each year. Most people see this as a positive, but if you have a problem paying more than you have to, this may not be the right payment structure for you.

Still need help figuring out whether a bi-weekly mortgage plan is a good decision? Talk to your financial advisor to learn more.