bi-weekly mortgage

A mortgage on which payments are made every two weeks. Mortgages are typically paid monthly. The bi-weekly payment amount is calculated by dividing a monthly amount in two. However, 26 payments are made over the course of a year, because some months are longer than just the two bi-weekly payment periods. The effect is an accelerated payment schedule, in which principal is paid down faster and the amount of interest paid over the life of the mortgage is decreased.