Article: What Advantages Does a Biweekly Mortgage Offer? : What Advantages Does a Biweekly Mortgage Offer? Skip to main content Home About Us Our Mission Statement Our Location Investment Services Our Services Our Qualifications Tell A Friend Resources Featured Links Client Online Payroll Sign In Articles Calculators Flipbooks Newsletters Glossary Videos Market Watch Detailed Quotes Markets at a Glance Portfolios Request A Quote Blue Cross Blue Shield Web Site Long-Term Care Insurance Group Health Life Insurance Individual Health Disability Income Insurance 401(k) Information Request Information Request Tax Information Where Is My Refund? Tax Library Fair Market Value Guide for Non-cash Contributions Goodwill Donation Valuation Guide General Fair Market Value Guide Client Secure File Portal Odelson Financial Services CPA, LLC connect Address: 10059 Roberts Road, Suite 1A Palos Hills, IL 60465-1992 Phone: (708).529.3053 E-mail: lodelson@sagepointadvisor.com Printed from: www.Odelsonfinancial.com What Advantages Does a Biweekly Mortgage Offer? Most homeowners make their regular mortgage payments every month for the duration of the loan term, and never think of doing otherwise. But prepaying your mortgage or making biweekly payments can reduce the amount of interest you'll pay over time. Under a biweekly mortgage, instead of making the payments once a month, you make half your normal monthly payment every two weeks. For example, if your mortgage is $1,000 per month, under a biweekly system it would be $500 every two weeks. If you maintain the biweekly payment schedule you'll make an extra month's payment over the course of each year (26 payments per year, which is the equivalent of 13 full monthly payments rather than 12). You'll also pay less interest because your payments are applied to your principal balance more frequently. The effect of biweekly mortgage payments can be dramatic. For example, if you currently have a $150,000 loan at 8 % fixed interest, you will have paid approximately $396,233 at the end of 30 years. However, if you use a biweekly payment system, you would pay $331,859 and have it completely paid off in 21.6 years. You would save $64,374 and pay the loan off 8.4 years earlier! (This is a hypothetical example of mathematical principles used for illustrative purposes only and does not represent the performance of any specific investment. Actual results will vary.) The information in this newsletter is not intended as tax, legal, investment, or retirement advice or recommendations, and it may not be relied on for the ­purpose of ­avoiding any ­federal tax penalties. You are encouraged to seek guidance from an independent tax or legal professional. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the ­purchase or sale of any security. This material was written and prepared by Broadridge Advisor Solutions. © 2022 Broadridge Financial Solutions, Inc. Securities offered through SagePoint Financial, Inc., Member FINRA/SIPC. Accounting, tax and insurance services are offered through Odelson Financial Services CPA, LLC who are not affiliated with SagePoint Financial, Inc. This communication is strictly intended for individuals residing in the states of California, Florida, Hawaii, Illinois, Tennessee, and Wisconsin. No offers may be made or accepted from any resident outside the specific state(s) referenced. IMPORTANT CONSUMER INFORMATION A Broker/dealer, investment adviser, BD agent, or IA rep may only transact business in a state if first registered, or is excluded or exempt from state broker/dealer, investment adviser, BD agent, or IA registration requirements as appropriate. Follow-up, individualized responses to persons in a state by such a firm or individual that involve either effecting or attempting to effect transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without first complying with appropriate registration requirements, or an applicable exemption or exclusion. For information concerning the licensing status or disciplinary history of a broker/dealer, investment, adviser, BD agent, or IA rep, a consumer should contact his or her state securities law administrator. Privacy Policy Site Map Back To Top Check the background of this investment professional Check the background of this financial professional on FINRA's BrokerCheck Check the background of this financial professional on FINRA's BrokerCheck