How biweekly payments work
A true biweekly plan splits your monthly payment in half and collects it every 14 days. A year has 26 of those periods, so you make 26 half-payments, which equals 13 full payments. The thirteenth payment is applied entirely to principal, and because your balance falls faster, less interest accrues each period.
| Monthly | Biweekly | |
|---|---|---|
| Payments per year | 12 full | 26 half (13 full) |
| Extra principal per year | $0 | One monthly payment |
| Typical payoff on a 30-year loan | 30 years | About 24 to 26 years |
True biweekly vs. lender programs
Some lenders advertise a biweekly program but simply hold your half-payments and post one full payment each month. That gives you no extra principal. Before you enroll, confirm that each payment is applied when received and that there are no enrollment fees. If your lender does not offer true biweekly, adding one-twelfth of your payment to each monthly payment produces the same result.