I’m considering paying my mortgage on a Bi-Weekly frequency. I understand how that help pay down the principal quicker (extra month’s pymt/yr).
What I am wondering is there any advantage in paying the same annual amount, but spreading the payment over 52 weeks? Does the weekly payment decrease the interest acrued, and if so is it significant enough.
With auto-transfers from bank it’s no extra work on my part whether it’s monthly, bi-weekly, or weekly, so is there any financial incentive, assuming I am going to pay the same annual amount regardless of the frequency?
I realize the biggest factor is how the interest is calculated each month, what is the industry norm?
Thanks for your help.