As people are thinking about refinancing (and buying), one question that comes up is whether or not to sign up for bi-weekly payments.  Making the equivalent of 1 extra mortgage payment per year can take years off of your mortgage and reduce the interest over the life of your loan. It is especially helpful at the beginning of the loan, when most of your payment is applied to interest and not principal.  An amortization schedule can help you figure out how much of each payment is being applied to the principal each month of the loan. But be wary of signing up for bi-weekly payments.  Many lenders charge extra fees for processing bi-weekly payments, and once you sign on you are contractually obligated to make those payments regardless of your finances from month to month.  There are many services that will offer to sign you up and administer your bi-weekly payments for a fee - never, ever sign up with them.  If you do decide to make bi-weekly payments, you can make arrangements directly with your lender and a third party is totally unnecessary.  However, you might do better by agreeing to monthly payments, and then making extra payments to your principal throughout the year or in one lump sum at the end of the year.  This is easy to do, and allows you to put the extra money toward your principal when it is convenient and financially feasible for you to do so.  The minor savings on interest when you make payments bi-weekly (less interest on two weeks of principal than on four) is rarely enough to warrant being locked in to that program .  The real savings come in cutting years off your mortgage by paying down your principal.  In many cases you can take 4-6 years off your loan by just making one extra payment per year. To find out how making that extra payment, or bi-weekly payments, will affect your loan, check out the various mortgage payment calculators on our website.  Before you decide to make additional payments to your principal, check with your lender regarding any penalties for paying your loan off early.  Please contact Blue Star Appraisals Inc. if you have any questions or would like to be referred to a broker or lender who can help find the right mortgage program to fit your needs.