Bryce Kirkpatrick - Mortgage Design Group Inc.

Ever wondered about the magic behind the numbers?

The difference between monthly, bi-weekly and accelerated bi-weekly mortgage payments lies in how payments are calculated and their impact on reducing your mortgage balance over time.

Here's a breakdown:

Monthly Payments What It Is: You make one payment per month, covering the full principal and interest amount for that month. Total Payments Per Year: 12 payments. Impact: This is the most common payment frequency. It matches the original amortization schedule (e.g., 25 or 30 years). No extra payments are made unless you choose to make additional lump-sum payments.

BI-WEEKLY PAYMENTS What It Is: Your monthly mortgage payment is divided in half, and you pay that amount every two weeks. Total Payments Per Year: 26 half-payments, which equals 12 full monthly payments (no extra payments). Impact: Matches the same total payment as monthly payments annually. It does not pay off your mortgage faster

ACCELERATED BI-WEEKLY PAYMENTS What It Is: Your monthly mortgage payment is divided in half, but you pay that amount every two weeks as if there were 13 months in a year instead of 12. Total Payments Per Year: 26 half-payments, but these total the equivalent of 13 full monthly payments annually. Impact: You pay the equivalent of one extra monthly payment per year. This reduces your principal faster, saving you interest and shortening the amortization period. Typically pays off a 25-year mortgage in about 22 years or less.

Which Should You Choose? Accelerated Bi-Weekly is ideal if you want to save on interest and pay off your mortgage faster without a significant impact on your budget. Monthly or Bi-Weekly is better if you prefer consistent payments without adding extra contributions.

Talk to us today to run the numbers!