Most biweekly mortgage payment programs come from third-party servicing companies who handle payment and billing services for banks and mortgage lenders, reports Sun West Mortgage Company. Many of the well-known banks and mortgage lenders do not offer biweekly mortgage payment programs.
Biweekly mortgage payments allow borrowers to reduce the terms on their existing mortgage, which cuts the overall payments borrowers make in half. The theory behind a biweekly payment is to pay off the interest owed on a mortgage loan sooner; thereby reducing the time it takes to pay off the principal owed on a loan. Estimates show that biweekly mortgage payments save borrowers as much as 23 to 30 percent on interest and reduce terms by an average of eight years, according to Mortgage Calculator.