Is it smart to make 26 biweekly mortgage payments rather than 12 monthly ones?
It’s not a bad idea. By splitting your mortgage payment in half and paying it every two weeks, you actually add in an extra mortgage payment over the year. Prepaying your mortgage cuts down on the amount of interest you’ll pay over the lifetime of the loan. Say you have a $300,000, 30-year fixed-rate mortgage financed at 6%; you’d pay your mortgage off about five years sooner, saving more than $73,000 in interest.
