(1.) A mortgage on which the borrower pays half the monthly payment every two weeks.

(2.) With a bi-weekly payment plan, you end up making 26 payments, which is the same as 13 monthly payments. The extra month payment is completely allocated towards principal. A biweekly mortgage amortizes before term.

Bankapedia's Take:

If you have ever taken a gander at an amortization schedule, you'll quickly realize how little principal you are paying on your mortgage, especially the first couple of yrs. The first yr of your mortgage about 1 and a half months of payments go towards principal with the rest being allocated to interest. By making the extra monthly payment you are nearly doubling your principal allocation the first couple of yrs. Typically a 30 yr mortgage will be paid off in 19yrs using a bi-weekly payment plan.

If you have any questions regarding bi-weekly mortgage payments, please connect with one of our online mortgage professionals.