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As of December 19, 2017, MyQL is now referred to as Rocket Mortgage.

If you’re a homeowner with a mortgage, you know that traditional payment schedules consist of a monthly payment that includes principal, interest, property taxes, homeowners insurance and possibly mortgage insurance. Together with the loan term you chose, these components determine what your monthly mortgage payment will be.

Depending on the above components, it can feel like a big monthly payment that can seem overwhelming when it hits you all at once. It’s for this very reason that some homeowners choose a more manageable monthly payment program, where the monthly payment amount is broken into biweekly payments.

Before you decide whether or not you want to enroll in biweekly mortgage payments, check out our four fast facts about the benefits of biweekly payments. (Spoiler alert: You can save thousands and pay off your mortgage faster!)

Make Smaller Mortgage Payments

Switching to biweekly payments will ultimately make your mortgage payments smaller. For the sake of simplicity, let’s break it down:

There are 52 weeks per year. That means switching to a biweekly payment system will add up to 26 payments per year, resulting in 13 monthly payments total. Compare that to a traditional payment schedule once a month (12 monthly payments), and you’ll find that you’re making one extra monthly mortgage payment toward the principal balance on your loan every year.

However, you’ll also be making smaller payments per due date. While the biweekly payment will add up to the same amount as a monthly payment, the advantage is the smaller, more manageable payments you receive at a time, allowing for easier budgeting and payment planning.

If you’re opting for biweekly payments as a Quicken Loans client, note that you have to be one month ahead in your payments before starting on the biweekly program. Once you’re set up with the biweekly payment program, your payments will be applied to your loan on a monthly basis.

Pay Off Your Home Quicker

That extra payment every year goes a long way in the life of your loan. It can actually cut years off of your repayment timeline – if you’re making an extra payment every year by switching to a biweekly payment program, you’re putting more money into your home than when you were making monthly payments, paying your home off faster.

Let’s put some number to this scenario. Say your loan is $200,000 on a 30-year-fixed rate mortgage with a 3.75% interest rate. By switching to a biweekly payment program and making one extra payment a year, you’re able to pay your mortgage off four years earlier than with a traditional mortgage payment.

4 Fast Facts About Why You Should Make Biweekly Payments on Your Mortgage - Quicken Loans Zing Blog

Save Thousands

Not only will switching to biweekly payments save you time in the life of your loan, it can save thousands in payments and interest.

Let’s continue with that same scenario of a $200,000 loan amount. By switching to a biweekly payment program, you can save over $20,000 in interest over the life of your loan.

To clarify, your principal balance will ultimately add up to the same amount as if you were making monthly payments – the money you save is reflected in the amount of interest you’ll pay over the life of your loan, which is significantly lower when you make biweekly payments.

Think of what you can do with the money you save by switching to biweekly payments! You could fund a home improvement project, save for retirement or even add to your child’s college fund.

Want to see your savings for yourself? Check out our amortization calculator and see how much you can save.

Align Your Payments with Your Pay Schedule

As mentioned above, traditional payments have you paying your mortgage once a month; biweekly payments spread out your payments every two weeks. This can come in handy for two reasons:

  • If you’re paid every two weeks, biweekly payments can be smaller and more manageable and can be scheduled on the days you’re paid.
  • If you’re on a fixed income, you don’t have to deal with a large payment due all at once every month.

You can choose a day between the first and fourteenth of the month to start biweekly payments, meaning you can select a day that aligns with your pay schedule. That way, you can guarantee that every 14 days following, half of a mortgage payment will be withdrawn from your bank account. You also don’t have to worry about sending a check each month, as biweekly payments can be automatically withdrawn from your account.

If you’re a current Quicken Loans client, you can sign up for biweekly payments by signing into your account and adjusting your payment program. In fact, signing up for biweekly payments through Quicken Loans is completely free – no extra fees involved.

If have questions on how you can start biweekly payments through Quicken Loans, you can talk to a Home Loan Expert today for more information.

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This Post Has 12 Comments

  1. my partner and I want to purchase a home. The issues are my credit is fair/good but Social Security Disability is my income. My partner’s credit is under 400 and her income is good.

    1. Hi Angela:

      It doesn’t matter where you get your income from. However, I can tell you that in order to use your partner’s income on the loan, you do need her to have a median FICO® score of at least 580 or higher. I’m going to recommend you check out our friends at QLCredit, this article with general tips on rebuilding your credit and speaking with one of our Home Loan Experts at (888) 980-6716 so we can come up with a comprehensive game plan to get and keep your credit where it needs to be. Thanks!

  2. Not related to this post, but I wanted to know if there is a problem with us creating a living trust where our home goes into the trust with a new deed issued showing the house as owned by the trust? This keeps our estate out of probate and will allow our executor to handle all our assets more efficiently.

    1. Hi Ragena:

      It may be possible for you to do this, but the title needs to be prepared correctly and you’ll eventually want to take it out of the trust once the property is inherited. I’m going to have someone reach out with as much detail as we can give. Thanks!

    1. Hi Randy:

      That depends on a couple of factors. The first one is whether she’ll be on the loan. If she isn’t on the loan, her bankruptcy and credit history are only factored in if you live in a community property state on a VA loan. Also, if it’s been four years since discharge or dismissal, you should be able to apply with her income just fine on a VA loan. It is important to note that it’s from the dismissal or discharge date and not the date of the filing itself. If you would like to go over your options online, you can do so through Rocket Mortgage or by giving one of our Home on Experts a call at (888) 980-6716.

      Thanks,
      Kevin Graham

  3. I applied for a refinance with Quicken!!! Was denied?? Apparently because of credit bureau! We are on a monthly income. Our payment is a real problem for us,, it hits hard on our income all at once!! I would really like that bimonthly program!! Much easier for us to stay on track! Every time I fill out a application its a hit on my credit! Very discouraging. Thanks for reading!!! Larry

    1. Hi Larry:

      I’m going to get this over to our Client Relations team so we can be sure to have someone reach out and look at your options again. It is true that filling out applications for any kind of loan will cause a credit hit. With that being said, if you’re rate shopping with several different lenders over a period of less than 30 days, it’s all counted as one inquiry. Thanks for reaching out and someone will be in touch soon.

      Thanks,
      Kevin Graham

  4. I’m paid just once a month and so it makes sense or me to pay the mortgage payment at the beginning of each month. I have opted to add $100 to the payment each month, to essentially make 13 payment instead of 12 each year. What is the difference in time and money savings?

    1. Hi Ann:

      There wouldn’t be a difference. You’re essentially doing the same thing. I’m glad you found what works for you.

      Thanks,
      Kevin Graham

  5. Thank you for this information, as I am recently a widow on fixed income, I do believe this will help me tremendously! At least I can try to see if it will help.
    Mrs. Loralei Ross (Quicken Loan member)

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