A biweekly mortgage refers to:
A) a mortgage that starts with unusually low payments that rise over several years to a fixed payment.
B) financing made available by a builder or seller to a potential new-home buyer at well below market interest rates, often only for a short period.
C) a fixed-rate mortgage with payments that increase over a specific period.
D) a mortgage that requires the borrower to pay only interest.
E) a loan on which payments equal to half the regular monthly payment are made every 2 weeks.

Question

Quizplus · Accepted Answer

A biweekly mortgage is a loan on which payments equal to half the regular monthly payment are made every 2 weeks. This method of payment results in 26 payments per year (or 13 full payments) instead of the standard 12 payments per year, which ultimately leads to the loan being paid off faster and with less interest.

A Biweekly Mortgage Refers To