Mortgage is defined as a debt, where borrowers give the lender a lien on their property as security for the repayment of a loan. There are various types of mortgages offered to borrowers along with various repayment plans. These repayment plans are equated monthly installments that borrowers are required to pay towards the repayment of their mortgage. These payments are calculated by considering the term of the mortgage, amount of the mortgage loan and the rate of interest. Borrowers can choose to pay their mortgages in biweekly, bimonthly, or regular monthly payments.

Regular monthly payments are calculated by dividing the total amount of the loan, including the interest, with the total term of the mortgage. Borrowers make these payments once a month to the mortgage company, each of the same amount. This means that for a thirty-year term, borrowers have to make 360 monthly payments.

Biweekly payments allow the borrowers to make these payments in two parts, twice in a month. Instead of paying the full amount once a month, the borrowers pay half of their scheduled monthly mortgage payment after every two weeks. The main advantage of this option is that borrowers repay an amount equal to thirteen monthly payments by the end of the year, instead of the usual twelve. This implies that the borrowers opting for this method of payment pay their mortgages faster and will save a lot of money on the interest applied.

Bimonthly payment plan is similar to both regular and bi weekly plans. The regular payment amount is split into half and the payment is made twice a month. However, with this plan, borrowers are able to pay off their mortgages only one month in advance. Borrowers also have the option to make extra payment every month towards the principal of the mortgage.