Bi-weekly Mortgage Payment vs Bi-monthly

What is the difference between Biweekly and a Bimonthly mortgage payment plans?

One will cut years off the term of your mortgage and save you 10's of thousands of dollars.

The difference between these two payment plans is subtle, but important.
With a bi-monthly payment plan, the borrower makes 24 payments a year (two every month) that equal the same amount as 12 regular, monthly payments. The benefit of this payment plan is that, by paying down the principal twice a month, you save some interest and more of the money from subsequent payments is applied toward the principal. The benefit is minimal, however, and you'll only shorten the term of your mortgage by one or two months at the most.

A bi-weekly payment is slightly different, as payments are made every two weeks. Because the payment schedule is based on the calendar year, a total of 26 payments are made. In other words, you're making the equivalent of one extra monthly payment every year. The benefit of this is significant; a 30-year loan, at 7% interest, will be paid off in just 23 years. If you like the idea of paying off your mortgage early, you have a couple of different options:

1. Your lender can set you up on a bi-weekly payment schedule which he will manage for you.

2. You can set up a budget and payment plan of your own that allows you to make a double-payment once a year. This will require discipline on your part, but what would you be willing to do to save $50,000 or so??

We recommend that you manage your payment plan on your own. While it's more convenient to have your lender do it, you'll pay a little extra for the convenience.

I found on www.Loan.com. My question was, how do you do this? Mark the calendar to pay an amount including PMI every 14 days, or do you just make payments on the principle on one 14 day period and then PMI (everything) on the second 14 day payment etc???

I searched from this site, "Biweekly Calculators." I did, however, have to provide my phone and e-mail address to get to this calculator. The next day I did receive a call from this lender, who left a message.

This Calculator will show you how a Bi-Weekly Mortgage Reduction Program will: Save You More Mortgage Interest! Help You Build Your Equity the Fastest! Cut Your Effective Interest Rate!
You can save even more and build equity faster by simply adding an extra $15 or $25 Bi-Weekly to your payment. You'll cut years off your mortgage.

On a $1000/Month Traditional Payment Plan example:
You will make an enormous difference in the total amount you will pay on your mortgage, simply by changing the way you make your monthly payment. Instead of the old fashioned way of making a $1,000 payment once per month, simply pay $500 every two weeks (plus any additional amount [$15 or $25] you may wish to add).