Determining your payment

A monthly mortgage payment is a scheduled payment that is automatically withdrawn from your bank account on the same day each month (e.g., the 1st of every month). With this payment schedule, you make a total of 12 payments per year.

A bi-weekly mortgage payment means that your mortgage payment is withdrawn from your bank account every two weeks, resulting in 26 payments per year. To calculate the bi-weekly payment amount, your monthly mortgage payment is multiplied by 12 months and then divided by 26 pay periods. Many homebuyers prefer this payment schedule because it aligns with their bi-weekly pay period, making budgeting more convenient.

An accelerated bi-weekly mortgage payment is withdrawn from your bank account every two weeks, just like a regular bi-weekly payment. However, the key difference is how the payment amount is calculated. With an accelerated bi-weekly schedule, your monthly mortgage payment is simply divided by 2. Since there are 26 pay periods in a year, this results in the equivalent of one extra monthly payment per year. Because you’re making slightly higher payments compared to a regular bi-weekly schedule, an accelerated bi-weekly plan allows you to pay off your mortgage faster and save on interest over time.

A weekly mortgage payment is withdrawn from your account every week, totaling 52 payments per year. To determine the weekly mortgage payment amount, your monthly mortgage payment is multiplied by 12 months then divided by the 52 weeks in a year.