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How Adjusting Your Mortgage Payment Frequency Can Save You Time and Money

When it comes to paying off your mortgage, small changes can lead to big savings. One of the simplest yet most effective strategies to cut down on your mortgage’s amortization period (the time it takes to fully repay your loan) is adjusting your payment frequency. By making more frequent payments, you can pay off your home loan faster and reduce the amount of interest you pay over time.

Let’s break down how this works and why it benefits you as a homeowner.

Understanding Mortgage Payment Frequency Options

Most lenders offer several different payment schedules:

  1. Monthly Payments: One payment per month (12 payments per year).

  2. Biweekly Payments: Half of your monthly payment every two weeks (26 payments per year).

  3. Accelerated Biweekly Payments: Half of your monthly payment every two weeks, but with the equivalent of one extra full payment per year.

  4. Weekly or Accelerated Weekly Payments: Payments every week, with an accelerated option to reduce amortization faster.

While monthly payments are the standard, opting for a more frequent payment schedule can significantly shorten your mortgage term and reduce interest costs.

How Does Changing Your Payment Frequency Help?

1. Paying More Often Reduces Interest Costs

Interest on your mortgage accumulates daily or monthly, depending on your loan agreement. The more frequently you make payments, the less time interest has to build up. This means more of your payment goes toward reducing the principal rather than just covering interest.

2. Accelerated Payments Cut Down Your Amortization

Switching to an accelerated biweekly payment schedule is one of the best ways to shorten your mortgage term. Since there are 52 weeks in a year, biweekly payments mean 26 half-payments per year—which actually equals 13 full payments instead of 12. That extra payment each year directly reduces your principal, helping you pay off your mortgage faster.

For example, if you have a 25-year mortgage, making accelerated biweekly payments instead of monthly payments could help you pay it off in 22 years or less—potentially saving you thousands in interest.

3. Builds Financial Discipline and Equity Faster

Making smaller, more frequent payments can make budgeting easier and help you build home equity more quickly. Since more of your payments go toward reducing your principal, you’ll own a larger percentage of your home in a shorter time. This is especially beneficial if you plan to sell or refinance in the future.

Real Savings Example

Let’s say you have a $300,000 mortgage with a 25-year amortization at an interest rate of 5%.

  • Monthly payments: ~$1,745 per month

  • Biweekly payments (non-accelerated): ~$873 every two weeks

  • Accelerated biweekly payments: ~$872 every two weeks (but results in an extra full payment each year)

By switching to accelerated biweekly payments, you could pay off your mortgage 3–4 years earlier and save tens of thousands in interest over the life of your loan.

How to Change Your Mortgage Payment Frequency

  1. Contact Your Lender – Most lenders allow you to change your payment frequency with little to no cost.

  2. Choose the Best Option for Your Budget – If you can afford accelerated payments, they offer the most savings.

  3. Automate Your Payments – Setting up automatic payments ensures you stay on track without the hassle of manual transfers.

Final Thoughts: A Simple Change for Big Savings

Adjusting your mortgage payment frequency is a small but powerful strategy that can help you become mortgage-free faster and save thousands in interest. Whether you choose biweekly, weekly, or accelerated payments, the key takeaway is that more frequent payments reduce the amount of interest you pay and shorten your amortization period.

If paying off your home sooner and keeping more money in your pocket sounds good to you, it’s time to explore your payment options and start making your mortgage work for you!