Biweekly Mortgage

Posted in Finance, Accounting and Economics Terms, Total Reads: 781
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Definition: Biweekly Mortgage

A mortgage loan repayment schedule where the borrower makes payments every two weeks instead of making it in monthly instalments. The biweekly amount paid is half of the monthly amount due. It might be taken by borrowers to save money over the life of the insurance or due to liquidity constraints on part of borrower which prevent large, one time payments.


It would also reduce the time taken to repay the loan though there might be initial fees involved. This implies that this form of a mortgage repayment will be more costly at the outset.


The biweekly mortgage plan involves 26 half payments equivalent to 13 full payments each year instead of the 12 full payments made in a traditional mortgage.

 

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