What is a Bi-Weekly Payment Plan? - Definition

What is a Bi-Weekly Payment Plan? - Definition
A Bi-Weekly Payment Plan is a mortgage repayment plan that is offered by many servicing companies. The repayment schedule is based on paying half payments every two weeks. Which provides a thirteenth

payment for the year. This extra payment reduces the principal balance at an accelerated rate. It is important to know that although the payment reduces the principle balance, it does not give you a lower interest rate. More importantly an "effective" interest rate is not an actual or existing interest rate.