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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 71 Comments

  1. I am interested in paying mortgage twice monthly. My problem is tha t I get paid twice a month. The first of the month like most folks and the 3rd week of every month. Can payments be setup to accommodate these two different dates.

    Regards, Mary McCulley

    1. Hi Mary:

      We do offer biweekly payments which can help you pay the equivalent of 13 months instead of 12 in order to pay off your loan quicker. Unfortunately, due to investor requirements, our biweekly payment set up is every two weeks. For example, if your first biweekly payment came out on the first of the month, your next payment would become due on the 15th. It’s not exactly what you’re looking for, but it’s an option if you want it. Thanks for reaching out!

  2. 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

  3. 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

  4. 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

  5. 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

  6. 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

    1. Hi Judith:

      Yes, you do get to pay additional money toward your principal on the biweekly plan. Nothing about that changes. Have a great day!

      Thanks,
      Kevin Graham

  7. Effectively, it is a skimming mechanism and should be illegal. Your bi-monthly payment should be applied directly to the accrued interest for the past two weeks it is covering and also reduce the principal portion at the same time, not held for two more weeks until the full amount for that month arrives. This, in turn, should reduce the interest acquired over the next two weeks based on the principal that was reduced by the last two week payment. Instead, Quicken would “hold” your money until the full month’s payment is collected and, in the meantime, they skim off the interest that would accumulate from them holding everyone in the program’s money for two weeks and using it for short term investment gains. Add up all of the billions of dollars and Quicken will make lots of money in interest skimming from your partial mortgage payment. Correct me if I am wrong and if Quicken does not use the holdings of these two week caches for short term investments.

    1. Hey tbones:

      I can assure you this is not a scam and is only intended to help clients save on interest by making one extra monthly payment per year. Investors have very specific guidelines for how your mortgage payment is dealt with and we have to follow those. I’m going to test you and is someone who can explain exactly why the program works the way it does. Thanks for reaching out and we understand your concern.

      Kevin Graham

    2. I agree. You may knock off one payment a year but by “holding the payment” until they have the full payment screws the borrower out of even more interest saved. If quicken didnt have anything to gain by this, then they would apply the payment immediately. No thank you. If I want to reduce my mortgage then I will just add more money to the payment. Quicken wouldnt do anything out of the generosity of their heart.

      1. Hi Scott:

        You can absolutely add more money to pay down the principal every month. This is something we definitely encourage. I do want to clarify that the policy about holding your money in a non-interest-bearing suspense account and applying it at the end of the month to your loan is not a policy we set, but instead the policy of our investors such as Fannie Mae and Freddie Mac, etc.

        Thanks,
        Kevin Graham

    1. Hi Mark:

      You have to be one month ahead in your payments before we can get you set up. For example if your next payment is due February 1, we would need you to pay it before the end of January. After that, you could go in and set up biweekly payments by picking a date. Your first-half payment for March is made on whatever date you choose and you have a half payment taken out every other week thereafter. I’m going to put you in touch with a Home Loan Expert to help you get set up.

      Thanks,
      Kevin Graham

  8. What about late fees? If you set the payments up bi-weekly, does this eliminate late fees and still report to the credit bureau that you are currently paying on time as agreed?

    1. Hey Judy:

      If you make your biweekly payments on time, there would be no late fees and it would report to the credit bureau that you were paying on time. Any pre-existing late fees would still need to be dealt with.

      Thanks,
      Kevin Graham

  9. Kevin,

    If you were to apply the payments as they are received, instead of holding them until the full payment, that would allow for less interest to be built up over those two weeks (assuming bi-monthly payments). The interest would be calculated on half a payment less (assuming interest compounds daily), which would lead to significant interest savings over the life of the loan. Is this an option, or will you always hold partial payments until the full amount has been transferred?

    1. Hi Jeff:

      We hold the payments until we receive the full payment. This is also the way many other biweekly payment services handle things and they charge a fee for doing so. You still save interest over the life of the loan by making the equivalent of one extra payment per year.

      Thanks,
      Kevin

      1. Thanks Kevin the response. I do agree that there are many other biweekly payment services, or other banks that charge fees to do this. I will also counter by saying there are many that do not charge fees and handle it as I have explained. Effectively cutting 4 years off a 30 year loan with the “extra payment” each year, while also cutting off additional years by applying payments bi-weekly so the interest is not able to build up the additional 2 weeks. I have had loan’s that were managed this way – no additional fees for doing so. I hope that Quicken will consider allowing this as an option.

        1. Hey Jeff:

          Thanks for the feedback. While this is not something that we offer at this time, I can pass this message along to the appropriate people so it’s taken into consideration.

          Kevin

  10. Good morning Mr. Graham. If I enroll in this program for bi-weekly payments and find that it does not work well with my budget, can I dis-enroll without any penalty or fee?

    1. Hi Eric:

      You can absolutely switch back to monthly payments at any time and we won’t charge you anything extra in penalties or fees. Have a good day!

      Thanks,
      Kevin

  11. I am somewhat interested in your bi weekly payment program. I was reading through the comments and it said that you hold the payment until the full monthly payment has been made. Do you pull it from my bank account and hold it or does it remain in my bank account? Might be a dumb question but I need to know just because I have had issues in the past.

    1. Hi Wendy:

      The money is removed from your bank account and stays in our system until we get the second half of the payment. At that point, it’s applied to your loan. Thanks for reaching out!

      Kevin Graham

  12. I’m curious. I’ve been making a biweekly payment for a couple months on my own now. I noticed on my statements that the full payment I made does not reflect as being paid extra but is applied to the next months statement. So I received a statesment for March 1st payment in January. Why??? Are you hanging onto my money and not applying it to my account so I can see truly where I am?

    1. Hi Miriam:

      If I understand what’s happening here correctly, I think you’re saying you making a full monthly payment every two weeks with the goal of paying down the principal. This is certainly something you can do, but you have to tell us you want the extra payment applied to the principal. It’s set up this way because people might want it applied to the next monthly payment if they’re going on vacation for example. There’s a setting in MyQL to let you dictate how you want the extra payment applied. If you pay by mail, it should be on the payment coupon. I’m going to get you to a Home Loan Expert to walk you through this.

      Thanks,
      Kevin Graham

    1. Hey Charles and Flora:

      This program sounds perfect for you then. I’m going to have someone reach out and help you get set up.

      Thanks,
      Kevin Graham

  13. In the example stated all one need do is voluntarily add another $89 towards principal to the monthly payment and accomplish the exact interest savings. It’s safer doing it that way in case you run into financial problems and can’t add afford the increase in payment. You are not locked to a two week schedule but can accomplish the same thing without taking the risk.

    1. Hi Dave:

      You can absolutely do that and achieve the effect of paying down the principal. I disagree slightly with your second premise. For many people, having a biweekly mortgage payment makes things easier by breaking the payment into more manageable chunks. There’s no increased payment. You just make one extra payment that’s equivalent to the same amount. Just playing devil’s advocate.

      Thanks,
      Kevin Graham

  14. With the bi-weekly program, I am not sure how many years are remaining on my loan. How do I find out how this program would work for me?

  15. The question that’s been asked a couple of times but not answered publicly is when the 1/2 payments are posted. If I enroll and have 1/2 payment made on 2/14/16 and another 1/2 payment made on 2/28/16, is the first 1/2 posted on 2/14, or is that held in limbo until the second 1/2 is received on 2/28/16? It only makes about $0.80 difference over the course of two weeks using your example above, but compounded over the life of the loan it can add up to big difference.

    1. Hi Darryl:

      The short answer is we hold the payment until we get the full amount due to investor guidelines. There’s a longer answer I’ve been giving that probably hasn’t shown up yet because our site has a predetermined cache rate. Pasting it below.

      We apply the payment to your loan once the money has come in for the full month. This still saves you quite a bit of interest over the life of the loan because you’re making the equivalent of one extra monthly mortgage payment per year since there are 52 weeks. (52/4 = 13) There’s a huge benefit to making an extra payment because that goes directly to principal. In addition, the way our program works, the extra payment is actually made up of two separate biweekly payments in different months. These payments are made directly on the principal in two different months when you get three paychecks. We don’t wait to gather the full payment on these principal payments. This saves you on interest. Also, there is no fee. This is a freebie.

      If you’re a QL-serviced client, you can see the effect of making the extra payment on your loan through our MyQL portal. If you’re not a client and just want to see the effect, check out our amortization calculator. Hope this helps.

      Thanks,
      Kevin Graham

  16. I am interested in the Bi-Weekly payments. But I am interested how you will apply this to my house payment. Do you hold it? Do you apply to balance bi-weekly?

    1. Hi Joyce:

      We apply the payment to your loan once the money has come in for the full month. This still saves you quite a bit of interest over the life of the loan because you’re making the equivalent of one extra monthly mortgage payment per year since there are 52 weeks. (52/4 = 13) There’s a huge benefit to making an extra payment because that goes directly to principal. In addition, the way our program works, the extra payment is actually made up of two separate biweekly payments in different months. These payments are made directly on the principal in two different months when you get three paychecks. We don’t wait to gather the full payment on these principal payments. This saves you on interest. Also, there is no fee. This is a freebie.

      If you’re a QL-serviced client, you can see the effect of making the extra payment on your loan through our MyQL portal. If you’re not a client and just want to see the effect, check out our amortization calculator. Hope this helps.

      Thanks,
      Kevin Graham

  17. I get paid on the 1st and the 15th. Will I charged a late fee if I pay on the 15th instead of the 14th or is this and automatic deduction every 2 weeks?

    1. Hi Rob:

      You pay every other week starting from the date you set it up. For example, if you made your first biweekly payment on the 5th, your next payment would be due on the 19th. Hope this helps!

      Thanks,
      Kevin Graham

  18. I am guessing, as asked by the others above, that QL will simply hold the money bi-weekly and apply it monthly. If I’m wrong, I’m interested. If I’m right, I’m not.

    I remember a mortgage company once offering to do this for me (bi-weekly payments) and they charged a fee. What a racket! They would charge a fee so they could hold onto my money longer instead of my saving any interest. At least you guys aren’t charging a fee — but I sure do hope that you also apply the payments bi-weekly. I think it would be good for you to publicly reply if you do apply the payments bi-weekly so that others can see the value.

    Thanks,
    -Matt

    1. Hey Matt:

      I want to address this. We apply the payment to your loan once the money has come in for the full month. This still saves you quite a bit of interest over the life of the loan because you’re making the equivalent of one extra monthly mortgage payment per year since there are 52 weeks. (52/4 = 13) There’s a huge benefit to making an extra payment because that goes directly to principal. In addition, the way our program works, the extra payment is actually made up of two separate biweekly payments in different months. These payments are made directly on the principal in two different months when you get three paychecks. We don’t wait to gather the full payment on these principal payments. This saves you on interest. Also, as you pointed out, there is no fee. This is a freebie.

      If you’re a QL-serviced client, you can see the effect of making the extra payment on your loan through our MyQL portal. If you’re not a client and just want to see the effect, check out our amortization calculator. Hope this helps.

      Thanks,
      Kevin Graham

        1. That’s true, Mary. We offer this option for clients who want it for easier budgeting and a scheduled extra payment, but you don’t have to be on this program to make an extra payment to principal. You’re free to go back to monthly payments at any time. Thanks!

    1. Hi Cathy:

      We can absolutely have someone reach out to you about getting that set up. Have a good day!

      Thanks,
      Kevin Graham

  19. The question was not answered if your bi-monthly payment would be credited at the time it is received or just hung onto and credited at the time the 2nd half of the payment comes in at the due date. That would save additional interest per month for the customer and if not you would be holding onto the early monthly half payment where you could receive interest on our money but we would not. Also couldn’t a person just pay half at 2 week intervals without signing up to do so, stating they want it applied to their January ( or whatever month) mortgage payment?

    1. Hi Diane:

      I’m going to pass this along to a Home Loan Expert to answer how the payments are credited. As to your other question, assuming you were caught up, you could theoretically apply extra to a payment in order to start paying the monthly bill in half payments, but that puts pressure on you to remember that cycle. If you get your bill biweekly, you won’t forget.

      Thanks,
      Kevin Graham

      1. Question has been asked twice and it is a very relevant question. Why don’t you just get the answer and post it here, rather than passing it along. The bottom line the people are asking is, will the payment get applied, thereby reducing the amount interest is calculated on for that half month. If the answer is yes, then the people asking are likely interested in the program, if not, they are probably like me and not interested in the program and certainly not interested in a call back.

        1. Hi Tim:

          We apply the payments at the end of the month. You still save on interest this way. You’re making 13 monthly payments instead of 12 and the 13th monthly payment goes directly to principal. Here’s a more detailed response I gave another commenter. You’re not seeing these yet because it takes a while for the site to refresh.

          We apply the payment to your loan once the money has come in for the full month. This still saves you quite a bit of interest over the life of the loan because you’re making the equivalent of one extra monthly mortgage payment per year since there are 52 weeks. (52/4 = 13) There’s a huge benefit to making an extra payment because that goes directly to principal. In addition, the way our program works, the extra payment is actually made up of two separate biweekly payments in different months. These payments are made directly on the principal in two different months when you get three paychecks. We don’t wait to gather the full payment on these principal payments. This saves you on interest. Also, there is no fee. This is a freebie.

          If you’re a QL-serviced client, you can see the effect of making the extra payment on your loan through our MyQL portal. If you’re not a client and just want to see the effect, check out our amortization calculator. Hope this helps.

          Thanks,
          Kevin Graham

  20. I just want to clarify… would you be posting the earlier payment? i was signed in with a company to make bi weekly payments and you were just holding my payment until you receive the whole amount due which did not help for reducing interest. Is this a new program that you are now offering?

    1. Hi Elina:

      I’m going to get you to a Home Loan Expert who can discuss any differences between our program and whatever program you were previously On for biweekly payments. This is a new option we’re offering our clients directly. You definitely save some on interest because you’re making the equivalent of one extra monthly mortgage payment every year by paying every two weeks. This leads to paying down the mortgage faster. Someone will be reaching out to talk to you about the differences.

      Thanks,
      Kevin Graham

    1. Hey Tony:

      Wonderful! I’m going to pass this along to someone that can give you more information. Have a great day!

      Thanks,
      Kevin Graham

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