bi-weekly mortgage

bi-weekly mortgage definition - finance
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.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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