Bi-Weekly Mortgage

Dave tells Mike that the bi-weekly mortgage payment is fine, it just doesn't accomplish much.

QUESTION: Mike is on Baby Step 6 and wonders if he should pay a bi-weekly mortgage. Dave says it doesn’t do much; he prefers the gazelle intense way.

ANSWER:  The way a bi-weekly mortgage works is that you pay a mortgage once every two weeks instead of once a month. Since you do that, you end up making the equivalent of 13 mortgage payments a year instead of 12. The principle of paying extra on the house works, but doing that with focus is better than paying gradually. Put as much money toward the house as you can and pay it off quickly.