There are many decisions to be made when signing your mortgage documents. One that many are most interested in, is getting the bi-weekly payment plan. For some this is a matter of convenience, to line up with payroll deposits and the like. For others, it is a matter of wanting to impact their over all amortization.

There are three types of payments to be considered in this situation; bi-monthly, bi-weekly and accelerated bi-weekly.


Bi-monthly payments are calculated based on twelve monthly payments broken down into 24 and debited twice per month (ie 1st/16th). There is no notable benefit to the overall amortization with this method. (mtg payment of 1000.00/mo would work out to $500, twice per month)

Non-accelerated/regular bi-weekly payments are calculated using 12 months worth of payments in a 12 month period, but is broken down over 26 payments. As in the first example, there is no notable benefit to the amortization with this method, either. (mtg payment of $1000.00/mo would work out to $461.54 bi weekly)


Accelerated bi-weekly payments are calculated by incorporating 13 months worth of payments in a 12 month period. The additional month is divided equally among your payment to increase them. (mtg payment of $1000.00/mo would work out to $500.00 bi-weekly, creating an extra full payment every year)

Impact of Accelerated Payments

Contractual Amortization ~ Impact on Amortization

40 years ~ 8 years, 1 month

35 years ~ 6 years, 3 months

30 years ~ 4 years, 10 months

25 years ~ 3 years, 7 months

20 years ~ 2 years, 6 months

15 years ~ 1 year, 8 months

10 years ~ 1 year

5 years ~ 5 months