Bi-Monthly Mortgage

Usually, mortgages are paid on a monthly basis. However, there are some alternative payment schedules (See Also: Bi-Weekly Mortgage).

One of these other possibilities is a bi-monthly mortgage. Under this program, a homeowner pays half a mortgage payment two times a month instead of paying the full payment once. These plans often come with lower interest payments, so the mortgage borrower ends up paying less over the course of the loan.

However, programs like these have to be set up with the lender to get any savings. Merely splitting your mortgage payment in two on your own won't lead to any decrease in the interest rate. Unfortunately, some banks extract additional fees for setting up a bi-monthly plan, which eliminate any interest savings. Still, a savvy shopper can sometimes get a deal by finding a good bi-monthly option.