What is the interest rate for a mortgage with bi-weekly payments?

The interest rate for a mortgage is influenced by various factors, including the type of payment schedule chosen by the borrower. Bi-weekly payments can lead to a lower interest overall due to the frequency of payments, which results in less interest accruing on the outstanding principal over time.

Option B, at 4.45%, suggests a competitive interest rate for a mortgage with bi-weekly payments, which may reflect adjustments lenders make for this payment frequency. Bi-weekly payments allow borrowers to make 26 payments per year, effectively reducing the principal balance more quickly than a monthly payment plan. This can lead to substantial savings in interest over the life of the mortgage, making a lower interest rate more attractive and feasible.

It's important to understand that lenders might offer different rates depending on the payment terms. The lower rate for bi-weekly payments can encourage borrowers to use this payment structure, as it can accelerate loan repayment and reduce the total interest paid.