Bi weekly payments can be set up at the time of your initial loan. Paying every two weeks, which is equivalent to one extra payment per year. This does reduce your loan balance earlier, savings you interest by accelerating your principal reduction.
However, if your loan is not initially set up this way, the servicer will hold your "partial" payment until the entire amount due for the month is received, then apply to your account. You would still pay an extra payment every year, accelerating your principal reduction as well.
It is best to initially set this up, but you can accomplish the same goals if you have not. You will just need to stay "on top" of the loan servicer to ensure that they are applying your payments correctly and in a timely manner.
However, if your loan is not initially set up this way, the servicer will hold your "partial" payment until the entire amount due for the month is received, then apply to your account. You would still pay an extra payment every year, accelerating your principal reduction as well.
It is best to initially set this up, but you can accomplish the same goals if you have not. You will just need to stay "on top" of the loan servicer to ensure that they are applying your payments correctly and in a timely manner.
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