This bill mandates that financial institutions in New Jersey must permit mortgagors to make biweekly and bimonthly mortgage payments, as well as allow for additional payments towards the mortgage principal without incurring any penalties. Specifically, it stipulates that biweekly payments will apply any excess amounts paid beyond the total annual mortgage payments to the principal, while bimonthly payments will be set at half of the total monthly payment due. The bill defines key terms such as "mortgagor," "financial institution," and "mortgage servicer" to clarify the entities and individuals involved in these transactions.

The legislation is designed to enhance the flexibility of mortgage payment options for borrowers, thereby potentially reducing the overall interest paid over the life of the loan. It applies to various financial institutions regulated by the state, including banks, credit unions, and licensed lenders. The act will take effect six months after its enactment and will apply to mortgage agreements entered into from that date forward.