Question: Here is a proposal that has been advanced as a way for homeowners to save thousands of dollars on mortgage payments: pay biweekly instead of

Here is a proposal that has been advanced as a way for

homeowners to save thousands of dollars on mortgage payments: pay biweekly instead of monthly. Specifically, if monthly payments are x, it is suggested that one instead pay x/2 every two weeks (for a total of 26 payments per year). This

will pay down the mortgage faster, saving interest. The savings are surprisingly dramatic for this seemingly minor modification. Assume a loan amount of $10,000,000 for 20 years at 6% interest, compounded monthly.

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