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Thanks for your inputs.

Just to follow up and to clear up a couple of points:

The idea was to pay the SAME amount of money and still reduce the mortgage term. I got into the trap of thinking biweekly is the same as bimonthly. But what I meant was truly to pay half the mortgage amount 2x per month. This, in my mind, would have reduced the interest amount substantially over the course of the loan.

However, after talking to the lender, they state that if 1 payment is not received equal to or greater than the amount due in that month, it will trigger a late charge. This in spite of the fact that adding up my 2 payments for the month adds up to 1 full payment.

I could not really get a straight answer on how often the interest is recalculated. I have sent some more messages to try to figure out when interest is calculated on the loan.

In retrospect, I am sure the lenders have thought that someone may try to do this, and put in that rule about 1 full payment to deter/stop people. Also, it maybe simply that interest is computed only monthly as a previous poster mentioned.
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