Family spending time together at home

Once you purchase a new home, your mortgage is a big monthly payment. Do you ever wish you could split that up into more manageable amounts? The way the payments are structured, if you make one extra monthly payment every year, this helps you save on interest over the long haul.

These are just a few benefits of biweekly payments. Rocket Mortgage is the place to start for those who want to enroll in biweekly mortgage payments.

Customized Biweekly Plans

Many people are paid every two weeks. Traditional payment plans have you paying your mortgage once a month. But unexpected, and sometimes costly, things happen in life: additional bills, surprise car repairs, or even an unplanned emergency room visit. Even with those folks who know how to establish good budgeting habits, it’s not always easy.

It can be tough to watch that payment disappear from your account every month. With biweekly payments, they become smaller and easier to plan. You get paid and you can plan for part of the check to go toward the mortgage.

This also may be helpful for those on a fixed income and don’t want to deal with a huge payment every month. The smaller payments can be easier to handle.

Free and Simple

Other companies charge a fee to accept your payments biweekly. Some charge hundreds of dollars. Setting up biweekly payments through Rocket Mortgage is completely free. There are no extra fees involved.

Since we handle the whole process, payment changes are also addressed efficiently. If you have escrow changes due to fluctuations in taxes and insurance, we’ll make sure you’re never overpaying or underpaying your mortgage payment.

Extra Payment Gets You Ahead

When you make your mortgage payment, you’re required to make it every month or 12 payments a year. When you switch to making a payment every two weeks, there’s one really cool advantage.

Since there are 52 weeks per year, that makes for 26 biweekly payments. If you divide that again, you see that it equals 13 monthly payments. In effect, you’re making one extra monthly mortgage payment every year by making the switch.

Just how much money does that save? Let’s take a look.

If you have a $200,000 loan amount on a 30-year fixed-rate mortgage at a 4.25% interest rate, your monthly payment would be $983.88. By making one extra payment on a yearly basis, you’re cutting 53 months of the loan – that’s over four years! By paying it off faster, you’re saving $25,763.48 in interest.

Want to try out your own scenario? Check out our amortization calculator. If you have a mortgage with us, use this calculator to take a look at how the extra monthly payment affects your loan. The faster you get rid of your mortgage payment, the faster that money can go toward travel, retirement, your child’s college fund. You’re limited by only your imagination.

Getting Set Up Is Easy

You can sign up for biweekly payments on Rocket Mortgage at any time. It’s important to 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 program, Quicken Loans applies the payments to your loan on a monthly basis.

For example, if your monthly mortgage payment is $1,000 and its due January 1. Once you satisfy your January payment, to set up biweekly half your payment will be due prior to February 14th. Every 14 days following half a mortgage payment will be drawn.

Sign up for biweekly payments through Rocket Mortgage today! What would you do with all of the money you’re saving on interest? Share your plans in the comments section below. Got questions? Contact a Home Loan Expert today!

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This Post Has 69 Comments

  1. Hello,
    Is it correct that you do not apply the biweekly payment to the loan at the time it is received, but rather, wait until both payments are received and then apply it?
    I have been making biweekly payments for a year or so and was just recently given this information.

    1. Hi Mary:

      When we receive your first biweekly payment for any given month, it’s placed in a non-interest-bearing escrow account. We don’t receive any interest for holding it. When we receive the second half of your payment later, the full amount is then applied to your loan at that time. This isn’t our decision, but a mortgage investor rule for the FHA, VA, conventional loans, and so on. That said, you save money in interest over time because you make the equivalent of one extra monthly payment every year. This extra payment is applied directly to your principal. I hope this helps clarify things!

    1. Good morning, Cheryl:

      It depends on how you’re specifying the payment be applied. When you make a mortgage payment, there are actually several options for how it should be applied to your loan. If you make any kind of partial payment without specifying, it could be applied to your next payment. People might do this if they know they’re going to be on vacation when the next payment comes to. You can also make a principal-only payment in addition to your regular payment in order to pay off the loan faster and pay less interest. Finally, there’s the option to make an escrow only payment, but you have to specify these things each time. By setting up a biweekly plan, it’s automatic and you don’t have to think about it. Because there are 52 weeks in a year, you end up making the equivalent of one extra full monthly payment that goes directly toward the principal and that does end up saving you money. If you’re a Quicken Loans client, you can enroll in biweekly payments through our Rocket Mortgage servicing portal. Hope this helps!

      Thanks,
      Kevin Graham

  2. Just closed last week with Quicken and was wondering if i can set up payroll deduction on a biweekly mode?

    1. Hi Harry:

      We don’t offer payments through payroll deduction at this time. However, you can set up automatic payments through MyQL to accomplish the same effect.

      Thanks,
      Kevin Graham

  3. Interested but… We do not do direct payment we prefer a paper bill like we currently have with Quicken. Can we do biweekly with a paper bill?

    1. Hi Richard:

      Yes, we would still send you paper bills if that’s what you currently have set up in your account.

      Thanks,
      Kevin Graham

  4. My current mortgage is through fifth third bank. They however do not do bi-weekly payments. I did have an account with Nationwide Biweekly administration but the company is discontinued that for their customers. I really want to get back on track with bi-weekly payments. Do you offer this to other customers who do not have a mortgage with you? I’ve been searching all over for a company that does this. Thanks!

    1. Hi Christen:

      Unfortunately, this is something we are only offering to clients who have a mortgage through us at this time. I’m sorry.

      Kevin Graham

  5. Hi Kevin,

    I am interested in the bi-weekly payments. I had already paid February’s mortgage payment on the 1st and I just paid March’s entire month payment today, February 14. I am assuming that the payment will be applied by Tuesday as tomorrow is a bank holiday. So when can I start the biweekly payment as I am ahead on my mortgage? Also I cancelled my current monthly auto debit from my bank account. Can you please help. I want to get set up on the bi-weekly payment structure.

    Thanks,

    Shitij

    1. Hi Shitij:

      I’m going to pass this along to someone who can answer your question on timing. Thanks for reaching out!

      Kevin Graham

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