The average home buyer today can save $80K and five years on their loan if they make bi-weekly payments.
Most people pay their mortgage once a month. But, if you want to save a ton of time and money, make half your mortgage payment every two weeks.
Instead of making the normal 12 payments a year – you can instead make biweekly mortgage payments, which ends up being 26 half payments a year (13 full payments a year).
It doesn’t seem like it would make a big difference, but consider this:
Say you close on a loan for $388,000 and your interest rate is 5.5%. By making bi-weekly payments as opposed to the normal monthly payment, you will actually save $80,000 in interest, and you’re going to pay off your loan five years faster.