Accelerated weekly payments
Accelerated payments are calculated by assuming there are only 4 weeks in a month. It is calculated by dividing the monthly payment by 4. Since you pay 52 weekly payments, by the end of the year, you have paid 4 additional weekly payments, i.e. a complete monthly payment. This accelerated payment schedule reduces the amortization period and saves you thousands of dollars in interest.
Accelerated bi-weekly payments
Accelerated bi-weekly payments are calculated by dividing your monthly payment by 2. Since you’ll be making this payment 26 times a year, you are making an additional monthly payment per year, which will reduce both the amortization period and total interest paid.
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