Bi-weekly mortgage or bi-monthly mortgage – As the names imply, these mortgage types have two payments per month. What’s the difference you ask? Plenty, actually. A bi-monthly mortgage is essentially the same as a typical monthly mortgage except that payments are made twice a month – monthly mortgage payment split in half and paid every two weeks. A bi-weekly mortgage deducts the amount reduced from the principal with every mortgage payment so that the total calculated interest is reduced and therefore reduces the term of the loan. This may seem like peanuts at face value but actually can be quite substantial as a typical 30-year fixed rate mortgage that is set up for bi-weekly payments will be paid off in a little under 24 years.

The following links will take you to the website of Jack Guttentag also know as the Mortgage Professor. Jack is Professor of Finance Emeritus at the Wharton School of the University of Pennsylvania, he has written a number of books on mortgage related issues, and his website, The Mortgage Professor’s website, can be a very informative source for mortgage advice and council.

Bi-weekly Calculator – Bi-weekly Payments Applied Bi-Weekly

Bi-monthly Calculator – Bi-weekly Payments Applied Monthly

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