How do Bi-Weekly payments work?
A Bi-Weekly payment is equal to one-half the regular monthly payment. This reduced payment is then paid bi-weekly or 26 times a year. Under this accelerated plan, the borrower pays off more principal than a borrower making monthly payments. Example: a $100,000 30 year loan at 8.125% (8.4765% APR based on 3 points) would have a monthly payment of $742.50. Making bi-weekly payments of $371.25 pays off the 30 year loan in approximately 22 years and saves you thousands of dollars in interest payments.
