Pros and Cons of Bi-Weekly Mortgage Payments!

Have you ever considered paying off your mortgage on your Louisville home in two bi-weekly payments rather than the one monthly payment?  It may seem like this wouldn't make much of a difference, but the truth is that bi-weekly payments really do add up more quickly.

Since there are 52 weeks in a year, you will end up making 26 payments in total- which is equivalent to 13 months rather than 12.  This means that your mortgage will be paid off faster and you will save money on interest payments in the long run.

This arrangement may be the best for you when it comes to paying off your mortgage quickly and saving money.  But, it's important to consider the possible disadvantages before you make the decision.

Cons of Bi-Weekly Mortgage Payments

  • Often lenders do not offer bi-weekly services free of charge.  You may be required to pay a registration fee as well as paying bi-weekly charges.
  • If you budget doesn't allow the room to pay more toward your mortgage every year, this could be a foolish move.  Don't neglect the importance of having an emergency savings fund or paying your bills.
  • If you have your mortgage payment set up via direct debit from your bank account, taking out a payment every two weeks could catch up with you if the funds are not there, especially if you are only paid once a month.  This could result in charges for insufficient funds from both your lender and your bank.

Pros of Bi-Weekly Mortgage Payments

  • Some people find that paying their mortgage bi-weekly fits better into their budget because it's easier to plan for a smaller payment amount- especially if they are paid every two weeks.
  • By shaving years off the length of your mortgage, you are reducing the amount of money you will pay in the long run.
  • You will also be speeding up the time it takes to build equity in your home.
  • You will be compelled to make an extra mortgage payment per year, enforcing good habits on yourself that will eventually pay off.

These are just a few factors to consider before deciding whether you should make bi-weekly payments on your mortgage.  If you don't want to commit to bi-weekly payments on your Louisville home mortgage, you can always save up your money and make a lump sum payment at the end of the year.

For more tips and advice, contact me at 502-643-2255 or email me at

If you are currently looking to purchase in 2014, please feel free to search ALL GREATER LOUISVILLE listings and surrounding counties homes, condos, vacant land etc. on my website, SOLDBYK.COM.