What type of mortgage allows for paying off the loan every two weeks?

The biweekly payment mortgage is designed for borrowers who make payments every two weeks, rather than on a monthly basis. This strategy allows borrowers to pay off their loan faster and ultimately pay less interest over the life of the loan. By making these more frequent payments, the borrower essentially makes an extra payment each year, as there are 26 biweekly periods in a year. This extra payment reduces the principal balance more quickly, which in turn decreases the amount of interest that accrues over time.

This type of mortgage can be advantageous for those looking to build equity more quickly in their home or aiming to pay off their mortgage sooner than the standard loan term. It is distinct from other types of mortgages, such as a monthly payment mortgage, where payments are made only once a month, or an interest-only mortgage, where the borrower pays only the interest for a certain period, leading to a different repayment structure.