A biweekly payment plan is simply a method of paying one-half of your normal mortgage payment every two weeks (biweekly) instead of paying a full payment monthly. By paying one-half of your monthly payment every two weeks (because there are fifty-two weeks in a year), you in essence make twenty-six half payments, or thirteen full payments, over the course of the year.
Many lenders, or third party providers, will offer biweekly plans but actually put the money into an account and apply the payments once a month. This is called a “standard,” or pseudo, biweekly plan. Although you still receive substantial benefit, it is not to the same magnitude.
Apply one additional full payment to your mortgage on the same date each year. If you receive an annual bonus, this may be a good use for the money. Or, if you prefer, make 1/12 of an additional mortgage payment every month along with your normal mortgage payment. The key, in both cases, is to be sure to instruct the lender to apply the payments directly to principal.
There are also several Web sites that will provide free biweekly calculators so you can look at the impact of biweekly payments on your mortgage for yourself.