Accelerated Payments

Accelerated bi-weekly payments equal half your monthly payment amount, paid every 14 days. Because there are 26 fortnights in a year (not 24), you make the equivalent of 13 monthly payments per calendar year — one extra month of principal applied directly to the loan annually. The same logic applies to accelerated weekly payments (one quarter of monthly × 52 = 13 monthly equivalents). The extra month adds up: a typical 25-year accelerated bi-weekly mortgage pays off in roughly 22 years, saving tens of thousands of dollars in interest with no rate change required. Standard (non-accelerated) bi-weekly takes the annual monthly total and divides by 26, so you make 26 smaller payments equal to 12 monthly equivalents — no early payoff benefit. Most lenders allow you to switch between frequencies at no charge. If your cash flow tolerates accelerated, it's the simplest free way to reduce total interest cost.