Payment frequency

Definition

The payment schedule: monthly, biweekly, or weekly, among others. An accelerated frequency increases the amount repaid each year. Example: on a $2,000 monthly payment, an accelerated biweekly payment is $1,000; with 26 payments a year, you repay $26,000 instead of $24,000, which is one extra monthly payment a year. Amortization shortens without the rate changing. A non-accelerated schedule simply splits the same amount into more payments.