Accelerated bi-weekly means paying half your monthly mortgage payment every two weeks — which works out to 13 monthly payments a year, one more than monthly. That extra payment goes to principal, shortening your amortization and cutting interest. Test the difference in our mortgage calculators and watch the rate that drives your interest on our live rate tracker.
Accelerated bi-weekly payments are half your monthly amount charged every two weeks. Because there are 26 pay periods a year, you make the equivalent of 13 monthly payments — one extra that goes entirely to principal. This shortens your amortization and reduces total interest, unlike regular bi-weekly, which just matches your monthly total. This is not financial advice.
With accelerated bi-weekly payments, your lender takes your normal monthly payment, halves it, and charges that amount every two weeks. There are 52 weeks in a year, so 26 bi-weekly payments. Twenty-six half-payments equal 13 full monthly payments rather than 12 — you quietly make one extra monthly payment each year. Because that extra amount is applied entirely to principal, your balance drops faster than it would on a monthly schedule, and less interest accrues over the life of the loan.
The word "accelerated" is doing the heavy lifting. A regular bi-weekly payment takes your total annual payment and simply divides it by 26. Your yearly total is identical to paying monthly — you just pay in smaller, more frequent chunks, with no extra principal. An accelerated bi-weekly payment instead takes half your monthly payment and charges it 26 times, so you end up paying the equivalent of one extra monthly payment a year. That single difference is what pays down the mortgage faster.
| Schedule | Payments/year | Extra to principal |
|---|---|---|
| Monthly | 12 | None |
| Regular bi-weekly | 26 (= 12 monthly) | None |
| Accelerated bi-weekly | 26 (= 13 monthly) | One extra payment |
Here is an illustrative example: on a $500,000 mortgage amortized over 25 years, switching from monthly to accelerated bi-weekly can shave roughly two to three years off the amortization and save a meaningful amount of interest. The exact savings depend on your rate, balance and starting amortization, so treat this as illustrative only and run your own numbers in our calculators. See how amortization works in our amortization guide.
Accelerated bi-weekly suits borrowers who are paid every two weeks and want a painless way to pay down their mortgage faster without a big lump sum. The catch is that your annual cost is slightly higher — you are making one extra payment a year — so confirm the amount fits your budget. If you would rather keep flexibility, a lump-sum prepayment using your prepayment privileges is an alternative, and many people combine both. Whatever you choose, it does not change your qualifying, which still runs through the stress test.
Accelerated bi-weekly means you pay half your monthly payment every two weeks. Because there are 26 two-week periods in a year, you make the equivalent of 13 monthly payments instead of 12 — one extra full payment a year that goes straight to principal.
Regular bi-weekly takes your annual payment total and divides it by 26, so your yearly total matches monthly — no extra payment. Accelerated bi-weekly takes half the monthly payment and charges it 26 times, adding the equivalent of one extra monthly payment each year.
Yes. The extra payment each year is applied to principal, so you pay the mortgage off faster and reduce total interest. The exact time and interest saved depend on your rate, balance and amortization, and any figures should be treated as illustrative.
Slightly. Over a full year you pay the equivalent of one extra monthly payment, so your annual cost is higher than monthly or regular bi-weekly. In exchange you save interest and finish the mortgage sooner. Make sure the extra amount fits your budget.
They work differently. Accelerated bi-weekly builds a small extra payment into your schedule automatically, while a lump sum is a one-time prepayment using your privileges. Many borrowers use both. The best choice depends on your cash flow and prepayment limits.