You've read the advertisements: Save money in the long run by replacing your regular monthly mortgage with a mortgage paid biweekly (every two weeks). It's a sound principle, and it can save you money. But don't assume it's always a slam-dunk.
Advice: Factor in taxes when you crunch the numbers. Since you can usually deduct the full-qualified mortgage interest, your biweekly mortgage savings aren't as great as they first appear. Plus, you'll have to make payments more frequently, which could hamper your cash flow.
Benefit: Pay mortgage off sooner
The standard monthly mortgage plan is simple: You pay on a monthly basis. If you opt for a biweekly mortgage, you pay the lender every two weeks for a total of 26 payments a year.
As a result, you must come up with more cash than usual, but you'll pay off your mortgage sooner.
The main attraction of a biweekly mortgage is that you pay less total mortgage interest becaus...(register to read more)