Because a standard year contains 52 weeks, paying half of your monthly installment every two weeks yields 26 bi-weekly payments—equivalent to 13 full monthly payments per year.
1. Amortization Acceleration Mathematics
| Mortgage Loan Parameters | Standard Monthly Schedule | Bi-Weekly Acceleration Schedule | Net Consumer Savings |
|---|---|---|---|
| $300,000 @ 6.5% (30-Year Fixed) | $1,896 / Month | $948 every 2 weeks (26 payments/yr) | Saves $74,800 in Interest |
| Total Time to Payoff | 30.0 Years (360 Months) | 24.2 Years (290 Months) | Debt-Free 5.8 Years Earlier |
| Total Cumulative Interest Paid | $382,633 | $307,833 | $74,800 Saved |