Chase Launches Free Biweekly Mortgage Payment Option

Posted on January 22nd, 2019
Chase Launches Free Biweekly Mortgage Payment Option

In an effort to make life a little easier for its mortgage customers, Chase has launched a new suite of “flexible automatic payments,” including a biweekly option.

If you happen to have a home loan serviced by the banking giant, you should receive information regarding the new payment options, all of which are free.

Chase now provides customers with three payment options that are automatically deducted either once a month, twice a month, or every two weeks.

That last option is a biweekly setup, with 26 half payments resulting in 13 total monthly payments annually.

Customers can also continue to make payments manually as well.

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Chase’s Flexible Automatic Mortgage Payments

payment options

If you had been interested in a biweekly payment program, you can now do it hassle-free thanks to this change.

You can also choose to make payments automatically and/or split your monthly payment into two to correspond with a paycheck.

Once a month option: Choose any date within your mortgage payment grace period and monthly payment is automatically deducted.

Twice a month option: Split your mortgage payment into two to be withdrawn twice monthly, paid once the total amount due is remitted.

Every two weeks option: Make half a mortgage payment every two weeks, funds applied once total monthly payment collected. Results in at least two extra half payments annually with extra applied to principal.

The first two options just allow borrowers to make automatic payments, which can be handy to avoid missing a mortgage payment.

But neither actually save the borrower any money. If anything, option number two could technically cost you money because you’re effectively parting with half your monthly mortgage payment early each month.

While perhaps splitting hairs, that money could be earning interest elsewhere during that time.

However, the third option does result in savings because it’s a biweekly mortgage payment setup.

Because half-payments are made every two weeks, that results in 26 half payments, or 13 full payments, annually.

The additional amount collected is automatically applied to the outstanding principal balance, providing both interest savings and a quicker payoff.

Note that the twice a month and every two weeks payment options may not be available for all loan types.

How Much Can You Save Making a Mortgage Payment Every Two Weeks?

Chase provides an example of the potential savings on a hypothetical $250,000 30-year fixed loan set at 4.5% with escrowed taxes/insurance of $475 per month.

Paying $1,742 once a month results in:

Loan paid off in 30 years
Total interest of $206,016

Paying $871 twice a month results in:

Loan paid off in 30 years
Total interest of $206,016

Paying $871 every two weeks results in:

Loan paid off in 24.5 years
Total interest of $162,094

As you can see, the savings can be pretty tremendous over the course of a couple decades if you elect to take them up on the biweekly option.

The loan would be paid off roughly 5.5 years early and the borrower would realize nearly $44,000 in interest savings.

If your home loan is with a different servicer, be sure to inquire about similar payment options if you’re interested in paying off your mortgage early.

Some may offer similar programs free of charge, while others might do the same in exchange for fees (potentially a setup charge and monthly costs).

It’s also possible to set up your own free biweekly mortgage payment schedule, though you do have to ensure that servicer accepts partial payments and applies them properly, with any excess going toward the principal balance.

Good to see a big lender like Chase being proactive and offering these payment options to their customers.


  1. John Doe October 3, 2019 at 1:09 pm -

    I don’t get it.
    If the every-two-weeks payment value is basically dividing the original monthly payment value by 2, it means that you are not saving by paying half of the original cost two weeks IN ADVANCE. That is, the mortgage company is the one making more money because they receive half of the payment EARLIER. The interest you’re paying per month is THE SAME.
    Might as well save that one month payment value yourself and just add as an extra payment towards principal at the end of each year…

    What am I missing here?

  2. Colin Robertson October 4, 2019 at 7:22 am -


    The twice a month option just results in a single payment paid at the normal time, as noted in the post. It’s just a preference for someone who might to break up their payments for whatever reason. The every two weeks option actually saves the homeowner money because it results in 26 half payments, or 13 full payments annually.

  3. Jo Wright February 6, 2020 at 7:43 am -

    My question is, does that mean I pay additional interest in that extra payment? If part of my payment is still principal and the other part is still interest, only the extra principal is getting applied to my loan. Wouldn’t it be better to add extra money to my loan so that I don’t give Chase another interest payment? It seems to me that there is an added fee of interest being charged here. Also, I am providing an extra payment, this would be the same as adding extra to your principal without getting charged interest, correct?

  4. Colin Robertson February 6, 2020 at 8:18 am -


    Any amount above the total due each month would go toward the outstanding balance of the loan, aka principal. It wouldn’t be applied to interest. And because you’d be paying off more of the outstanding balance, subsequent monthly payments would accrue less interest (due to that smaller balance), which is exactly how you save money. While your monthly payments wouldn’t be lower as a result of paying more, the composition of future payments would be more principal-heavy, thereby saving you money on interest.

  5. Darlene Robinson April 1, 2020 at 4:02 pm -

    What is your fee

  6. Colin Robertson April 1, 2020 at 4:39 pm -

    Chase doesn’t charge extra for biweekly payments.

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