BIMONTHLY MORTGAGES - ARE THEY FOR YOU?

You make your mortgage payment two times a month, instead of monthly. Since there are 52 weeks in the year, you end up making 26 payments, which is the equivalent of one month's extra payment. This additional payment significantly reduces the amount of interest charged for the mortgage and often reduces the term of the loan.

Most lenders require that you maintain a deposit account from which payments can be drawn on an automated basis. This eliminates some paperwork and the extra mailing that would be necessary with the additional payments. Some lenders will require that the borrower's paycheck be direct-deposited into this same account.

You will want to consider this option carefully, as it could be restrictive for your personal financial arrangements. The biweekly mortgage could also have a less competitive interest rate and may not be offered by your selected lender.