Finance

In Hawaii, what is a 'biweekly mortgage payment' plan and its primary benefit?

AA. Making two smaller payments per month with no interest savings
BB. Making payments every two weeks, resulting in 26 half-payments (equivalent to 13 monthly payments) per year, reducing interest and shortening the loan term✓ Correct
CC. Making one payment every two months to reduce cash flow stress
DD. A government program for low-income homeowners in Hawaii

Explanation

Biweekly payment plans result in one extra full monthly payment per year (26 × half payment = 13 monthly payments), significantly reducing total interest and shortening the loan term.

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