No. of Recommendations: 0
What are the advantages and disadvantages of a bi-weekly mortgage?

Advantage: You get your mortgage paid off quicker. (But why wouldn't you just finance your mortgage for a shorter term anyway?)
Advantage: If you get paid bi-weekly it's easier to manage your cashflow. (But see below)

Disadvantage: It usually costs a bundle to set up and maintain.
Disadvantage: You can pay off your mortgage biweekly without paying anyone else -- just make sure that in months when you get 3 paychecks, send in a check marked "This payment is a prepayment of principal."
Disadvantage: In fact you can prepay any amount of principal at any time using this method.

Maybe advantage, maybe disadvantage: Depending on the interest rate of your mortgage and the interest rate on other possible places to put your cash, when all is said and done prepaying the principal may result in more or less money than paying by the schedule.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.