biweekly loan

Biweekly Loan

A loan in which the property buyer makes payments every two weeks instead of once per month. Both payments could apply to principal and interest, or one of the payments could pay down the principal exclusively. Because of the extra payment, a biweekly loan is repaid faster, which saves the buyer additional interest payments. It is, however, more expensive in the short and medium terms; the bank may also charge extra fees for changing the payments to a biweekly structure.

biweekly loan

A loan that calls for payments every 2 weeks, rather than once a month.

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A typical $250,000 loan can save over $60,000 in interest payments and shorten the term of the loan 61/2 years by refinancing with a biweekly loan.
30 /PRNewswire/ -- Crestar Mortgage Corporation today announced that, in observance of the 10th anniversary of the company's development of the mortgage industry's first biweekly loan, it will waive the special fees on the biweekly mortgage for new applicants.