How Biweekly or Twice-Monthly Mortgage Payments Can Save You Money in 2025

Most homeowners make a mortgage payment once a month: it’s convenient and simplifies keeping track of payments. Another option is paying your mortgage twice a month or biweekly, which can help you pay off the home loan faster and reduce the total interest over the loan’s life.

A quick side note: while biweekly or twice-monthly mortgage payments may save you money, a mortgage refinance could offer you better loan terms if you find the right lender. Do your homework and compare both routes before committing to either one.

Table of Contents

1. What’s the difference between biweekly and twice-monthly payments?
2. How paying your mortgage every 2 weeks works
   1. Pros of paying your mortgage
   2. Cons of biweekly mortgage payments
3. How splitting your mortgage works
   1. Pros of splitting your mortgage payments into 2 per month
   2. Cons of twice-monthly mortgage payments
4. What to consider before choosing a payment strategy 
5. FAQ 

What’s the difference between biweekly and twice-monthly payments?

First, let’s define biweekly vs. twice-monthly payments. These terms may look very similar, but there’s a subtle difference between the two.

Biweekly payments mean you forward half of your monthly mortgage payment amount every two weeks, regardless of what day of the month these payments fall on.

With twice-monthly payments, you pay half of the monthly mortgage on specific dates—for example, the 1st and 15th of the month. 

Over your loan period, either choice will impact the total number of payments you make and how much you save on interest. Lenders may also handle these two options differently.

How paying your mortgage every 2 weeks works and saves you money 

Now we’ll dive deeper into the biweekly mortgage payment option. Learn how this loan repayment strategy can help you save money and build home equity faster.

How biweekly payments save you money

With a biweekly mortgage payment plan, you make a payment every two weeks. Since there are 52 weeks in a year, this equals 26 installments, which is like making 13 rather than 12 full monthly payments. The extra payment reduces your loan balance faster and helps cut down on total interest. 

Pros of paying your mortgage every 2 weeks

If you’re considering biweekly mortgage payments, the following perks could sway you in favor of this option.

✅ Build equity faster

When you make a mortgage payment every two weeks, your home equity grows faster. This means you own a bigger portion of your home’s market value.

More home equity makes it easier to qualify for a home equity loan or a HELOC if you need it. It increases your net worth and improves your chances of selling your home profitably whenever you decide to put it on the market.

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✅ Pay less over the life of the loan

The extra yearly payment may shorten your loan term by four to six years if you have a 30-year mortgage. Since you’ll chip away at your loan balance faster, you’ll pay less total interest.

✅ Align payments with a biweekly paycheck

Biweekly payments make sense if you get a paycheck every two weeks. This option would coordinate mortgage payments with your salary.

Cons of biweekly mortgage payments

With all their potential advantages, biweekly mortgage payments do involve some drawbacks. These include limited lender options, potential fees, and a more intense payment schedule.

✖️ Not all lenders support biweekly payments directly

Some lenders won’t accept biweekly mortgage payments. Among those who do, we’ll mention Capital Bank, which has a biweekly fixed-rate mortgage option. Similarly, Vanderbilt Mortgage and Finance offers a biweekly mortgage repayment plan.

Still, biweekly payments aren’t standard in the home loan industry, so it might be tricky to find a suitable lender who accepts a payment every two weeks. A lender who fits you in every other aspect may only work with conventional monthly payments.

✖️ Some lenders charge fees for biweekly payment setups

You may also encounter lenders who allow biweekly mortgage payments but charge a fee for this loan repayment option. Always review any associated costs before you enroll in an alternative mortgage payment plan.

✖️ Can require discipline or third-party services to implement

If you don’t automate your mortgage payments, a biweekly installment may require extra effort or discipline on your part. You may also use third-party services to handle the payments for you. However, third-party payment processors charge a setup fee and ongoing fees for every transaction.

How splitting your mortgage into 2 payments per month works and saves you money 

Paying your mortgage twice monthly (e.g., on the 1st and 15th of each month) is another strategy that could potentially help you pay off your home loan faster and cut mortgage costs. Let’s break down how this works.

How twice-monthly mortgage payments save you money 

Unlike the biweekly route, twice-monthly mortgage payments don’t add up to an extra annual payment. Still, paying your mortgage twice a month may save money. How?

Your outstanding principal balance influences the total interest you pay. The basic formula is as follows: 

Daily interest = (Annual interest rate/365) x (Principal balance)

Thus, reducing the principal balance by making an early half-payment will lower the interest on the second monthly installment. 

The difference may seem negligible when you look at each month individually, but these savings will add up throughout the life of your loan. If you make two monthly payments consistently over 15 or 30 years, you may potentially save thousands of dollars by reducing the daily interest. 

Of course, this only works if the lender applies your half-payment immediately. If the lender holds your first monthly payment until you make the second one, the principal won’t decrease sooner, nor will the daily interest you pay.

Pros of splitting your mortgage payments into 2 per month

Opting for two monthly mortgage payments comes with several advantages. Smoother cash flow and interest savings are two major reasons borrowers choose this option.

✅ Easier to budget for many households

For many homeowners, splitting the monthly mortgage payments into two equal installments makes it easier to control cash flow. A smaller payment is often more manageable. 

✅ No extra payment required to save money on interest 

Although your total mortgage payments add up to 12 rather than 13 full installments a year, you’ll pay less interest over the loan period when you pay semi-monthly (as explained above).

✅ Many lenders support twice-monthly payments

As with the biweekly option, twice-monthly mortgage payments depend on lender policy. You’ll need to ask your lender which payment schedules they support.

Cons of twice-monthly mortgage payments

Before you sign up for a semi-monthly mortgage payment schedule, consider the potential downsides. 

✖️ Smaller interest savings compared to paying every 2 weeks

Compared to a biweekly payment plan, twice-monthly installments generate less interest savings (because you don’t make an extra annual payment).

✖️ Requires consistent budgeting to stay on schedule

Since you commit to paying your lender on fixed dates, you must ensure you have enough money in your account on both dates, or you risk missed payments and penalties.

When choosing between bi-weekly or twice-monthly mortgage payments, first check with the lender to see what it offers. Second, if the lender allows for bi-weekly payments, ensure your cash flow allows for the extra payment and the timing of such payments to the lender.

What to consider before choosing a payment strategy 

Before you decide on a monthly, twice-monthly, or biweekly mortgage payment schedule, sit down and do some number-crunching. Consider how each option would align with your income, existing debts, and available home loan options. 

Budget

Does your cash flow support making mortgage payments more often? A biweekly mortgage payment plan, especially, calls for some serious budgeting. Confirm you can afford a whole extra payment a year. 

Lender policies

As we already mentioned, not all lenders allow biweekly and semi-monthly payments, and some charge extra fees for these options. You may need more extensive loan shopping if you’re set on paying your mortgage twice a month. 

Other debts

Also, take a hard look at your other debt. Do you have loans with a higher interest rate than your mortgage? If so, you might want to focus on paying off those debts first. 

Refinancing

Finally, consider other options for saving money on your mortgage. Refinancing is often a better choice than biweekly or twice-monthly payments (more about that below).

Depending on the interest rate of the mortgage, putting extra payments to work may not be in your best interest. If there is a low 3% rate vs. 6% rate, I recommend paying the minimum on the 3% rate mortgage. The 6% mortgage may make a lot more sense to put the extra payments to work. However, all else equal, this depends on your financial situation.

Can a mortgage refinance help you save more than biweekly payments? 

Biweekly payments lower your total interest rate largely thanks to the extra annual payment, which reduces your principal balance faster. However, refinancing may cut the interest on your entire loan, potentially generating much bigger savings.

If your finances and credit score have improved significantly since you first applied for a home loan, you may qualify for a better interest rate today.

Alternatively, if you can afford larger home loan payments, you may consider shortening your loan term, e.g., switching from a 30-year to a 15-year mortgage. Our mortgage refinance calculator can help you gauge how much you can save in either scenario.

How does this work?

For example, let’s say you’re currently paying off a $200,000, 30-year mortgage with a 6% APR. Your monthly payment would be close to $1,200. Using the calculator shows that by refinancing with a 15-year loan term and paying roughly $490 more every month, even at the same interest rate, you may save close to $128,000 over the life of your loan.

If you switch to a 15-year loan term and qualify for an improved 4% APR, your monthly payments would only be $280 higher, and you’d save over $165,000 overall!

How to choose a mortgage refinance provider

If you are assessing your options for better home loan terms, check out these mortgage refinance companies. 

Specifically, we like SoFi for its variety of loan products, strong customer support, and convenient, user-friendly platform. We also appreciate Rocket Mortgage’s diverse mortgage options, quick application process, and transparent terms. 

How to start biweekly or twice-monthly mortgage payments 

If you decide to begin paying off your mortgage biweekly, first check with your lender and ask whether they support this option. If not, you’ll have to find a suitable third-party service. The service will collect your biweekly payments and hold them until they accumulate a monthly payment amount and forward it to your lender.

Just check that the company’s setup costs and monthly processing fees aren’t too high compared with the potential savings on your home loan. Alternatively, you could check whether your lender allows a direct extra annual payment. 

To start semi-monthly installments, typically all you need to do is contact your lender and establish payment dates. Very important: verify that your payment timing fits the lender’s due dates. Lenders require one full monthly payment by a certain day of the month. Your two half-payments must reach this amount by the due date, or your payment may be technically late.

Also, keep in mind that if you miss a payment’s due date, you may be charged late fees. To avoid this, make sure your payment schedule meets the lender’s requirements.

FAQ 

Can you switch between biweekly and twice-monthly payments?

You might be able to switch between biweekly and twice-monthly mortgage payment schedules, but it depends on your lender’s policies. Some lenders allow this adjustment without cost, while others may require additional paperwork or charge a fee.

If your lender doesn’t offer both options, you may be able to set up a payment plan manually through your bank or a third-party service. Before making the switch, confirm how the change will affect your loan, including how payments are applied and whether it affects your ability to pay down the loan faster.

What happens if you miss a biweekly or twice-monthly payment?

Missing a biweekly or twice-monthly payment can have similar consequences to missing a traditional monthly payment. Most lenders will assess a late fee if they don’t receive the payment by the due date, and a significant delay could harm your credit score. 

If you’re on a biweekly payment plan, missing a payment could disrupt the schedule and delay your progress toward paying down the principal faster. If you can’t make a payment, contact your lender as soon as possible to discuss your options and avoid serious penalties.

Do biweekly payments require an additional fee?

Some lenders charge fees to set up biweekly payment plans, especially if the process involves third-party services that collect and manage the payments on your behalf. These fees can be one-time setup fees or recurring charges for processing payments. 

However, many lenders now offer biweekly plans without added costs. If fees apply, consider whether the savings in interest over the life of the loan justify the extra expense. You can create a similar effect by making extra principal payments manually without enrolling in a formal biweekly program.

Which method saves the most money?

Biweekly payments typically save more money over the life of the loan compared to twice-monthly payments because biweekly payments result in 26 half-payments per year (or 13 full payments), while twice-monthly payments total only 24 half-payments (12 full payments) annually. 

The extra full payment with the biweekly schedule reduces your loan principal, accelerating payoff and reducing the total interest paid. However, the exact savings depend on your loan terms, interest rate, and how long you stay on the schedule. Always calculate potential savings to see which method works best for your situation.

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