Long-term mortgages can be daunting, but there is a way to save thousands of dollars in loan costs. As long as investors remain disciplined and keep making payments, a bi-weekly mortgage can help them make the calendar work in their favor. With bi-weekly mortgage payments, homeowners make half of their mortgage payments twice monthly, resulting in 26 half-mortgage payments each year.
In comparison to the 24 available bi-monthly pay periods, the 26 bi-weekly periods produce the equivalent of one extra monthly payment each year. This can save homeowners cash and help them pay their loan off ahead of schedule. According to experts, there are significant challenges associated with maximizing the benefits of a bi-weekly mortgage, so be sure to work with your financial advisor.