Make your mortgage work harder.
Compare monthly, biweekly and accelerated payments, then see what an extra payment changes.
How the comparison works
The monthly payment is calculated from your balance, remaining amortization and chosen interest convention. Ordinary biweekly payments equal the monthly payment × 12 ÷ 26; accelerated payments equal half the monthly payment. The fourth plan adds your extra amount to every accelerated payment.
A practical example
For a $2,000 monthly payment, ordinary biweekly payments are about $923.08 and accelerated payments are $1,000. Before the loan ends, that accelerated schedule budgets $26,000 per model year rather than $24,000.
Method & assumptions
The monthly formula is P × r ÷ (1 − (1 + r)−n). A 0% rate uses P ÷ n. For semiannual compounding, the periodic rate is (1 + annual rate ÷ 2)2/f − 1. For monthly compounding it is (1 + annual rate ÷ 12)12/f − 1, where f is 12 or 26. Interest is charged before each end-of-period payment.
Rates remain constant through the whole amortization; renewals, prepayment penalties, taxes, insurance and fees are excluded. The model uses 26 equal biweekly periods per year, not dated lender transactions. Confirm your contract’s compounding convention and prepayment privileges.
FCAC: mortgage payment frequencies and contract terms