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What is the benefit of a"bi-weekly" mortgage?
There is really no secret to the widely touted
"bi-weekly mortgage." As the name implies, the borrower pays half the
monthly mortgage payment every two weeks (bi-weekly). At the end of the
year, the borrower has made 26 half payments, or 13 full payments, or one
more payment than required. One extra payment per year made in this manner
can reduce a 30-year loan term by eight years.