What is the effect of choosing accelerated mortgage payments?

Choosing accelerated mortgage payments typically means making payments at an increased frequency, such as bi-weekly instead of monthly. This strategy leads to shorter amortization, which is the period over which the mortgage is paid off. By making more frequent payments, homeowners can reduce the principal balance at a faster rate, ultimately resulting in a lower total interest paid over the life of the loan and a shorter term for the mortgage.

When payments are accelerated, each payment includes a larger portion applied to the principal, especially with well-structured amortization schedules. This reduces the total time it takes to repay the loan, enabling borrowers to achieve full ownership of their property sooner than they would with standard monthly payments.

Moreover, while the payments may indeed be higher per period, the total number of payments—and thus the overall length of the mortgage term—is reduced. This contrasts with other options that might suggest different impacts on cash flow or payment structure.