Bi-weekly mortgage payments enable you to use the yearly calendar to your benefit.  By making a payment every two weeks you will have made 26 payments rather than 12 if you had paid monthly.  Your total monthly mortgage expense will be the same for biweekly as monthly payment schedules, and by paying every two weeks you are paying about one extra payment per year.  These extra payments can shave off years to the life of your loan, saving you thousands on interest payments. For example, say you have a 30 year fixed rate mortgage for $100,000 at 6.5%. When paying bi-weekly, you will pay off your mortgage in about 24 years and save approximately $28,000 in interest over the lifetime of your loan. Even though you’ll be making an extra payment each year, you won’t likely feel a significant financial impact because the payments will be spread throughout the whole year. Another benefit of paying bi-weekly is that you can align your payments with a bi-weekly pay period, making budgeting per pay period easy. 

If your budget allows the extra month's payment per year, a bi-weekly mortgage could be your best option. Whether you're looking to purchase a new home or refinance, Skowhegan Savings has you covered with support from local mortgage lenders who keep your loan serviced by our team based in Maine.  Reach out to one of our community bankers to learn more about our bi-weekly mortgage options and click here to see our current rates.