Most mortgages allow you to indicate how frequently you would like to make your payments. Payment options generally range from weekly to monthly. It is often a good idea to align your payment frequency with the frequency that you or your spouse is paid. Here are the most common payment frequencies:
| Monthly |
Payments are made once per month |
| Semi-Monthly |
Two payments per month |
| Bi-Weekly |
Payments are made every two weeks |
| Bi-Weekly Accelerated |
Bi-Weekly Accelerated is similar to Bi-Weekly in that the payments are made every two weeks. The difference is that the payment calculation results in a higher payment because it is established as one-half of the normal monthly payment. Therefore, over the course of a year, you make an extra month of payments when compared to monthly payments. |
| Weekly |
A payment each week |
| Weekly Accelerated |
Weekly Accelerated is similar to Weekly except that the payment calculation results in a higher payment because it is established as one-quarter of the normal monthly payment. Therefore, over the course of a year, you make an extra month of payments when compared to monthly payments. Plus, since payments are made every week, there is slightly less interest because payments are made earlier than monthly payments. |
If your budgeting allows you to pay more frequently, you will incur less interest over the life of your mortgage by doing so.
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