Requires financial institutions to allow mortgagors to make biweekly and semi-monthly payments and payments to mortgage principal.*

This bill requires New Jersey financial institutions (including banks, credit unions, and mortgage servicers) to allow mortgage borrowers to choose biweekly payments (every two weeks), bimonthly payments (twice monthly), and extra payments toward their mortgage principal without penalties. It directly affects homeowners with mortgages secured by residential properties (1-6 units) in New Jersey. The key provision mandates that any overpayment in biweekly plans must reduce the principal balance, while bimonthly payments must equal half the monthly amount. The law applies to all new mortgage agreements signed six months after enactment.