You always here the term, but people always ask me what it means. “Accelerated Weekly or Bi-Weekly Payments”.

So here goes……..

Mortgage payments are calculated on (12) Monthly or (24) Bi-Monthly payments per year.

But when you pay Bi-Weekly you make 2 extra payments (26) per year. So you pay the same yearly amount but roughly 8 % less per payment.

So Bi-weekly accelerated means you pay the Bi-monthly amount 26 times per year or roughly 8% extra per year and in this way you Accelerate your payments.

So for example:

$500,000 Mortgage Payment = $1058.19 / bi-month (24) or $25407.12 / year

$500,000 Mortgage Payment = $977.17 / bi weekly (26) or $25407.12 / year

$500000 Mortgage Payment = $1058.19 / Accelerated Bi Weekly (26) or $25407.12 / year

I Hope this helps

As always, feel free to reach out anytime.

Tom Parent

Parenting people to their dreams!