What is a “Bi-weekly” loan?
A bi-weekly mortgage is a 15 or 30 year, fixed rate loan that requires the borrower to make payments every two weeks rather than monthly – for a total of 26 payments each year. Each bi-weekly payment is exactly one half the amount that would be payable under a mortgage paid monthly. The 26 bi-weekly payments are equivalent to 13 monthly payments a year – in effect, one extra “monthly” payment each year. This results in rapid equity build-up, accelerated loan payoff, and substantial savings in interest charges. This is a very popular payment program at MSGCU and there are no additional fees or costs involved.
