A mortgage that requires the borrower makes payments every two weeks. Since you would pay 26 bi-weekly mortgage payments, by the end of a year you would have paid the equivalent of one extra monthly payment.  Bi-weekly payments are calculated by dividing the monthly payment by two, thus resulting in making 13 payments a year versus only making the normal 12 payments.

ADVANTAGES:

You will be reducing the term of your loan by up to eight years; you are paying less interest over the life of your loan and building up equity in your home faster because more of your money is going towards the principal rather than interest. Since you will be paying off you mortgage sooner, you will be able to contact your lender to discontinue (PMI) private mortgage insurance (if applicable) earlier, which will also save you even more money.

DISADVANTAGES:

Certain additional fees, such as a set-up fee, maintenance, per transaction fee have to be paid and if you cancel once you have chosen to set it up through the lender they can charge a cancellation fee. You can do the biweekly payment plan on your own without paying any additional lender fees, by adding additional monies to you monthly payment stating on you coupon to use it to pay down the principle balance of your loan.