Thirteen payments a year
How it works
You take your monthly loan-and-interest payment, cut it in half, and pay that every two weeks. A year holds 26 of those, which comes to 13 monthly payments instead of 12. That thirteenth one is where the saving comes from.
Your lender decides how much it helps
These figures assume each half payment counts the day you make it. If your lender holds the money until a full payment is due, you get less out of it. A fee to join the plan eats into it further. Ask how yours handles it before you sign up.
An easier way to do the same thing
Take one monthly payment, divide it by 12, and add that to what you pay each month. Over a year that is the same extra money, you keep control of it, and there is no fee. Just tell your lender the extra goes on the balance.
What is left out
This compares loan and interest only. Property tax, insurance, mortgage insurance and association fees are not sped up, because paying them early does not reduce what you owe on the house.