Bi-weekly vs monthly: does it really save money?

TL;DR: Bi-weekly adds one extra monthly payment per year (26 half-payments), reducing interest and term slightly.

How it saves

• 26 half-payments ≈ 13 full payments/year vs 12 monthly → principal drops faster.
• Interest calculated on a lower balance → total interest down.

When it makes sense

• You’re paid every two weeks.
• No prepayment penalties.

Experiment with extra payments in the calculator.