What is a bi-weekly or accelerated mortgage payment plan?

A bi-weekly or accelerated mortgage payment plan is a special type of loan repayment option offered by lenders in California that allows a borrower to reduce the repayment period of their loan and potentially save on interest payments. In this type of repayment plan, the borrower makes two half payments every two weeks instead of one full payment at the end of the month, which would normally be due. Even though the borrower still pays the same total amount towards the loan each year, the payments are spread out over 26 bi-weekly payments instead of 12 monthly payments. This can make it easier for the borrower to meet their debt obligations while also reducing the overall number of payments made on the loan. The main benefit of an accelerated mortgage payment plan is its ability to reduce the amount of interest payments that are due on the loan. By making more frequent payments, the borrower pays off their loan faster and thus reduces the amount of interest that accrues throughout the life of the loan. This can potentially save the borrower hundreds or thousands of dollars in the long run. Additionally, with an accelerated mortgage payment plan, the borrower does not have to worry about months with three payments due and can plan their budget according to the same payment schedule each month. In California, this type of repayment plan is becoming increasingly popular, as more and more homeowners are turning to it as a way to reduce their debt and save money.

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What is a bi-weekly or accelerated mortgage payment plan?

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