How does a biweekly mortgage work?
Biweekly mortgages have been around for years, and are an accepted way to pay your mortgage off early. Many banks are now offering biweekly programs because their mortgage customers are demanding that they do so. Our fees are priced to meet or beat nearly every banks pricing structure. Click here for a detailed explanation of how a bi-weekly mortgage works. When you make a normal mortgage payment every month, a certain percentage of that payment goes to interest, and the rest to principal. Principal is the original amount that you borrowed. The percentages that go to each of these parts is determined by a formula when the loan is taken out. Sadly, the vast majority of your payments in the beginning of your loan go to interest, and not principal. For example, a borrower taking out a $145,000 mortgage over 30 years at a low 7.5% interest rate will only pay back $16,370 in principal during the first 10 years of their loan. So they have paid for 1/3 the loan amount time, but still owe 88.7
