Here is how a normal fixed-rate monthly amortization schedule is calculated:
First we determine the total monthly payment:
Payment = [P*(r / n)(1 + r / n)^nt] / [(1 + r / n)^n*t - 1]
where n = 12, P is the loan, t is the loan term, and r is the interest rate.
Then the interest required each month is simply calculated:
Interest = r*B/12n
where B is the current remaining balance
And the principal paid each month is:
principal = Payment - interest
How do lenders change these calculations when we do biweekly payments? For example do they divide by 24 or by 26? Or perhaps do the extra two payments each year go entirely towards interest so it's equivalent to normal monthly payments + 1 annual principal only payment?
Spreadsheet showing amortization schedule, feel free to copy it. I showed two different amortization approaches the bank may take with a biweekly payment schedule: https://docs.google.com/spreadsheets/d/19HSKLYnqsSY3M6a5h5xs18u8PoILS21773j5JPYS_zc/edit?usp=sharing