Typical borrowers make their mortgage payments monthly. Some, however, make bi-weekly payments to reduce the term of their loans.
Could weekly mortgage payments speed the payoff even further? The answer in some cases is yes—but usually not much more than with bi-weekly plans.
Converting to any schedule that increases payment frequency reduces the principal loan amount faster,
resulting in less interest owed and a shorter mortgage term, says Jack Guttentag, professor emeritus of
>finance at the Wharton School of the University of Pennsylvania. The biggest benefit of weekly payments,
however, is not cost savings, but convenience for people who are paid weekly and like to handle bills
accordingly, he adds.
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