Biweekly Accelerated Payment

Importance: 0.43

Is a company: no

Is a proper noun: no

Synonyms

  • every two weeks
  • expenses
  • bills

Alternate Spellings

  • Bi-weekly
  • Accelerated

Definition of Biweekly Accelerated Payment

  1. A mortgage loan that requires payments every two weeks instead of one standard monthly payment. Each 26 biweekly payment is equal to one-half of the standard monthly payment. Making biweekly mortgage payments is advantageous to the buyer because it results in a substantial reduction in interest payments because the mortgage is paid off quicker.

Related Terms and Acronyms

  • Pre-payment Definition,
    • Applying additional payments towards the balance of a mortgage loan.
  • Pre-payment Clause Definition,
    • A clause that stipulates the amount of principal a borrower may prepay ahead of schedule without penalty as well as the prepayment penalty for larger prepayments.
  • Mortgage Renewal Definition, Very Important,
    • A renewal as it pertains to the mortgage industry is defined as having an existing mortgage term end and signing a new term to continue.
  • Lump Sum Payment Definition,
    • One-time single-sum payment or payout.
    • An extra payment made to reduce a loan.
  • Amortization Definition,
    • Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
  • Pre-payment Penalty Definition,
    • A lender's charge to the borrower for paying off the loan before the end of the term.
  • Mortgage Payment Definition, Important,
    • A periodic payment used to pay off a mortgage's principal and interest.
  • Additional Principal Payment Definition,
    • Extra money included with a loan payment to pay off the amount owed faster. Over time, this practice reduces the amount of interest paid.
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