Everyone perhaps come to a point when money is badly needed and the most practical option left is to borrow from others. Whether it is a necessity or just for personal pleasure, there are some things to consider before accepting the offer of a particular lender. Nowadays, many lenders encourage their clients to settle for a biweekly payment structure because it has a ‘magic’, which helps make faster payoff and significant decrease in the overall interest costs. As promising as it seems, notable finance analyst Jeff Rutt claims that it is not always the case with biweekly mortgage payments. In fact, there is a great possible that this form of payment can be too inconvenient and inefficient.

In its most basic essence, biweekly mortgage payment is a payment plan where payments are made in a fixed 2-week interval. In other words, a borrower makes payment every other week as agreed with the lender. Compared to monthly and semi-monthly payments, biweekly payment indeed has a faster payoff and lower total costs of interests because of the said ‘magic’. With a fixed payment in a 1-year fixed period, the total payments in monthly and semi-monthly payments are both equivalent to 12 payments, while that of the biweekly payment has a total of 13 fixed monthly payments. The 13th monthly payment is basically the accumulated excess days in the 12 months. To make it clearer, one should remember that there are a total of 52 weeks in a year. If the payments are made every two weeks, there will be a total of 26 fixed biweekly payments throughout the 1-year period. Thus, this 26-payment structure is more than the 24 payments in a monthly payment. This simply means that the two additional payments in biweekly payment shorten the payment period in the long run, as explained by Jeff Rutt.

There are several financial services firm that provide online consultation service for those who need help in their financial decision. One of them is Bankrate, an accredited online company that has already assisted many people around the world for their financial concerns, particularly in their loans. Jeff Rutt suggests his clients that having the service of such firm will enable them to maximize their loan plans according to their capabilities of paying them. He also points out that a financial firm like Bankrate can help borrowers resolve their conflict with their lenders regarding their agreements for payment of the borrowed money.