American Investment Planners LLC: What is a Biweekly Mortgage?

For those who have a mortgage on their homes, you’re probably like the majority of people

and make monthly payments on it. This is probably due to the fact that most people think

that that’s the only way to pay off a mortgage. Well, surprise — you have more options!

You can make biweekly payments and reduce the amount of interest you’ll pay over time.

What is a Biweekly Mortgage?

As the name implies, a biweekly mortgage is one in which you make half payments every

two weeks instead of full payments every four weeks. Over a year, you end up making 26

weeks worth of payments equaling 13 months instead of the typical 12. This allows you to

pay off your mortgage quicker, saving you money in interest. Besides that, there are a few

other benefits of biweekly mortgages.

Since most people get paid every other week, making payments on a biweekly mortgage

can be easier since it would coordinate with your biweekly paychecks. Plus, it can

sometimes be easier making smaller payments more frequently than making larger

payments less often.

Since biweekly mortgages allow you to pay off your mortgage sooner, you’ll own your home

sooner and have more equity. You can use that equity down the line towards home

improvements or to help pay for your children’s college education.

Think of it this way: let’s say you pay 5% on your mortgage, and pay the amount off 3

years ahead of schedule since your biweekly mortgage allowed you to make those extra

month’s payments. That’s 3 extra years of 5% interest that stays in your pocket instead of

going to your lender — that amount can be used for other investment opportunities.

At American Investment Planners LLC, we make it a priority to help you prepare for the

best financial future possible. From tax management to retirement plans, we’re here to

help with anything you may need. To schedule an appointment with one of our advisors,

please call (516) 932-5130 or email info@americaninvestmentplanners.com.