(2.) A bi-monthly mortgage requires the borrower to pay half of the monthly payment on the first day of the month, and the other half on the 15th.

Bi-monthly payment plans don't achieve the same results as the bi-weekly payment plan and are therefore rarely recommended or used. On a 30 year fixed mortgage, for example, it will take 29 years and 11 months to pay off (1 month sooner than a standard payment plan), and you will save only one month's interest.

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