Chapter 5
Mortgage Payment Frequencies & Accelerated Payment Options
When setting up your automated bank withdrawals, you can choose how frequently you pay. Changing your frequency changes how fast you accumulate equity. Here is exactly how each option behaves over a year.
The Five Standard Payment Schedules
- Monthly: 12 payments per year, drawn on the same date each month.
- Bi-Weekly: Your monthly payment is multiplied by 12 and divided by 26 pay periods. You make 26 standard payments per year.
- Accelerated Bi-Weekly: Your monthly payment amount is simply split exactly in half and withdrawn every two weeks. Because there are 52 weeks in a year, you end up making 26 payments — which effectively adds up to one full extra monthly payment every year directly to your principal.
- Weekly: Your payment is broken down across 52 standard payments per year.
- Accelerated Weekly: Your monthly payment is divided by four and withdrawn every single week, achieving the same rapid principal paydown effect as accelerated bi-weekly schedules.
Pro-Tip: Switching from monthly to accelerated bi-weekly typically shaves 3–4 years off a 25-year amortization without changing your day-to-day budget meaningfully.
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