Question:

How are biweekly mortgage payment plans structured?

Answer:

Biweekly mortgage payment plans are structured to reduce your interest and loan term and are referred to as "accelerated payment plan", together with the bimonthly payment plans. With a biweekly mortgage payment plan, you end up with one additional payment applied to the principal and this is how your principal and interest are reduced to your advantage.

Lenders may require you to pay a fee to switch you to a biweekly mortgage plan, or you could use a biweekly mortgage company to do the job for you, again for a fee. However, there are certain implications to a biweekly payment plan.

Unfortunately, especially if you are self-employed or commission based, you may not be able to make a biweekly payment every time, or you won't be able to pay the same amount. It might be easier to make an additional monthly mortgage payment at the end of the year, instead of make biweekly payments.

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