Overview
Both strategies accelerate your mortgage payoff, but they work differently. Biweekly payments split your monthly payment in half and pay every two weeks — resulting in 26 half-payments (13 full payments) per year instead of 12. Monthly extra payments add a fixed amount to each payment. The math is nearly identical, but the execution and costs can differ significantly.
Side-by-Side Comparison
| Feature | Biweekly Payments | Monthly Extra Payments |
|---|---|---|
| How It Works | Pay half your payment every 2 weeks (26 payments/year) | Add extra amount to your regular monthly payment |
| Extra Payments Per Year | Equivalent of 1 extra monthly payment | As much or as little as you choose |
| Flexibility | Fixed schedule — hard to change | Fully flexible — change or stop anytime |
| Cost | Third-party programs charge $300-$500 setup + fees | Free — just send extra with your payment |
| Interest Savings (on $360K, 6.75%, 30yr) | ~$67,000 saved, pay off ~5 years early | ~$67,000+ saved (with equivalent extra amount) |
| Setup Required | Enrollment with servicer or third-party | None — just pay more |
| Risk | Third-party programs may hold payments | No risk — you control everything |
Pros & Cons
Biweekly Payments
Advantages
Automatic — set it and forget it
Aligns with biweekly paychecks for easier budgeting
Guaranteed extra payment each year
Disadvantages
Third-party biweekly programs charge unnecessary fees ($300-$500+)
Some programs hold your payment and only pay monthly anyway
Less flexible — harder to adjust if finances change
Your lender may not apply payments correctly
Monthly Extra Payments
Advantages
Completely free — no setup fees or program costs
Fully flexible — increase, decrease, or stop anytime
You control exactly where the extra goes (principal)
Can achieve the same or better results than biweekly
No risk of a third party mishandling your payments
Disadvantages
Requires discipline — you have to remember to pay extra
Easy to skip when money is tight
Must specify "apply to principal" with your servicer
When to Choose Each Option
Choose Biweekly Payments if...
Choose biweekly only if your lender offers a free biweekly program (no third-party fees) and you get paid biweekly. Never pay a third-party company for biweekly payment processing — it's a waste of money.
Choose Monthly Extra Payments if...
Monthly extra payments are almost always the better choice. You get the same interest savings with zero fees and complete flexibility. The DIY approach is to divide your monthly payment by 12 and add that amount as extra principal each month — this exactly replicates a biweekly schedule.
The Bottom Line
Skip the biweekly payment programs and their fees. Instead, divide your monthly mortgage payment by 12 and add that amount as extra principal each month. You'll get identical results for free. For example, if your payment is $2,335, add $195/month extra to principal. Use our biweekly calculator to see the exact savings.
Run the Numbers
Frequently Asked Questions
The concept is worth it — making the equivalent of one extra payment per year saves significant interest. But paying a third-party company to do it is not worth it. You can achieve the same result for free by adding 1/12 of your payment as extra principal each month.
On a $360,000 loan at 6.75% for 30 years, one extra payment per year saves approximately $67,000 in interest and pays off the loan about 5 years early.
If your mortgage rate is above 5-6%, paying extra is a guaranteed return at that rate. If your rate is below 4%, investing in index funds (historically 7-10% returns) may build more wealth. Use our extra payment calculator to compare both scenarios.