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If you are in the market for a home mortgage, or if you are already a homeowner paying off a mortgage, do you know about bi-weekly payments? Biweekly mortgage payments are a way to pay off your mortgage years early, while saving money all at the same time.

A biweekly mortgage payment plan means that half of the scheduled monthly payments are made every two weeks, which means that you make 26 payments per year -- one extra payment per year. How can this type of payment program save you money? Let me tell you.

A biweekly mortgage payment plan will result in interest savings over the life of a mortgage because it reduces the principal of the mortgage as each payment is received. Now, beware because there are bimonthly mortgage plans that are also available; however the bimonthly plan, although subtle in definition compared to a biweekly plan, has major financial differences.

The bimonthly payment plan means that half of the scheduled monthly payments are made twice a month, which means 24 payments are made each year. So if you are on the bimonthly plan, your lender may hold your first payment until he or she receives the second payment, therefore not reducing the principal of your mortgage as often as the biweekly plan.

For example, say you are on the biweekly plan and your mortgage is $2,000/month. If you send your lender $1,000 every two weeks, depending on interest rates, you could pay off your mortgage five to 10 years early. Seven years is the average.

If you are interested in setting up a biweekly payment plan all you have to do is call up your lender and ask if they offer that type of program. Remember, setting up a biweekly payment plan does not mean that you are refinancing or signing up for a different service. Chances are good that your lender will recommend an outside company to use.

When you are inquiring about setting up this plan, there are a few key questions you should ask, such as "What do you do with my money when you get it? When do you actually fund the extra payments? How much will it cost me to use the program?" Those are important questions because some companies will hold onto your money and send it in a lump some once a year -- you do not want that. You want a company to make those extra payments to your mortgage as soon as possible. In order to build equity on your home, you must have a lender that immediately credits your mortgage upon receipt. You will also want to know the costs involved compared to the savings so you can make an informed decision.

Also, no matter what mortgage plan you choose, always remember to review your statements.