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What Is a Biweekly Mortgage Calculator?

Interested in paying your home mortgage off faster and paying less interest over the life of your loan? It may be time to start making biweekly mortgage payments.

A month-to-month home loan payment is standard for many lending institutions. On a month-to-month schedule, you make one home mortgage payment every month, leading to 12 mortgage payments each fiscal year. When you pay your home mortgage on a biweekly schedule, nevertheless, you pay half of a mortgage payment every two weeks. Throughout a year, this leads to 26 half payments or 13 complete home mortgage payments - one additional payment compared to a regular monthly schedule.

Curious what a biweekly home mortgage payment may indicate for your financial resources? Whether you're thinking of changing a current home mortgage to biweekly payments or exploring a new home loan, it's a good idea to get a clear image of your payment options. Use our biweekly mortgage calculator to compute the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to utilize the biweekly home loan calculator. First, get in the following information:

Principal loan balance: If you have not started paying your home mortgage yet, this will be the total loan quantity. If you have actually been paying your home mortgage, get in the loan balance that stays. Rate of interest: Enter the present interest rate of your loan. Make certain to be precise to the decimal point. Loan term: The term of your loan is the variety of years up until the loan is due to be paid off. If you have a 30-year loan, your loan term is 30 years. Enter that information here.

Once this information has actually been gotten in, all that's delegated do is press "Calculate".

Next, it's time to see your payoff results. The biweekly mortgage calculator takes this information and creates 2 various calculations:

Monthly home loan payments: First, the biweekly home mortgage calculator tells you the information of what a month-to-month payment may appear like. It computes your month-to-month payment amount, the overall interest you'll pay over the life time of your loan, and the typical interest you'll pay each month. Biweekly mortgage payments: Next, the biweekly home mortgage calculator offers the biweekly payment info. You'll see the biweekly home mortgage payment amount, overall interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll see that by making biweekly mortgage payments, you can decrease the total amount of interest paid over the life of the loan.

Under the calculator results, the biweekly home loan calculator shows a graph of your loan balance in time when utilizing monthly payments (the black line) versus biweekly payments (the red area), noted here as the "Accelerated Balance".

You'll see that with biweekly home loan payments, your loan balance will reduce at a much faster rate and you'll pay off your loan in less time. The quicker you settle your loan, the less balance will stay that you need to pay interest on. That means you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the difference between a regular monthly versus biweekly mortgage payment schedule may seem very little, the additional month's home loan payment each year makes a huge difference in the long run. Benefits of biweekly payments consist of:

Paying off the loan faster: Because there's an additional loan payment every year, customers who make biweekly payments settle their loans much quicker than regular monthly payment borrowers. Paying less general interest: Because the loan is settled faster, less primary loan balance remains to pay interest on. Over time, this leads to significantly less interest paid. The greater your interest rate, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity quicker: As you settle your home loan, the amount you paid off becomes your equity in your house. When you settle your home mortgage quicker with biweekly payments, you'll develop equity much faster. This comes in helpful if you decide to sell your home before the loan is paid off or if you desire to get a home equity loan, home equity credit line, or cash-out refinance eventually.

Biweekly vs. Bimonthly Payments

Some lenders also provide the alternative to pay a loan bimonthly. Borrowers who do so will share of their loan payments monthly, generally on the 1st and 15th. Just like making a regular monthly mortgage payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times monthly.

Making bimonthly home loan payments can assist debtors minimize the amount of interest paid over the life of the loan. However, they don't have as huge of an impact as biweekly mortgage payments, which assist you pay off your loan faster, pay less interest over time, and construct equity in your house much faster.

That said, bimonthly loan payments may be an excellent alternative for some. People who earn money on a bimonthly schedule might find this payment schedule favorable. Some may find that paying their loan right away after receiving their paycheck works well for their cash flow and budgeting efforts. Others may simply feel much better paying a smaller quantity two times each month, instead of paying a lump amount simultaneously.

Related Calculators

Interested in other tools to enhance your finances? We provide a variety of calculators to assist you understand the monetary impacts of different types of loan payments, interest rates, and more:

Blended Rate Calculator: Do you have multiple different loans with numerous different rates? Our blended rate calculator averages these rates into a single interest rate to help you much better understand just how much you're paying in interest. DSCR Calculator: Use this tool to quickly estimate your financial obligation service protection ratio, which is a crucial metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers receive unique loans with a series of benefits, like low loan rates, no deposit, and more. Use this calculator to identify what a VA home loan may appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent professional, utilize our bank statement calculator to see what sort of mortgage you can get approved for using bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily purchasing down your interest rate is a sensible decision based on your financial resources. Debt Consolidation Calculator: A financial obligation consolidation loan rolls numerous debts into a single payment, normally with a lower rate. See what a loan like this may look like based upon your present financial obligations. VA Loan Affordability Calculator: Estimate how much home you can afford when using a VA loan. Mortgage Payoff Calculator: See how altering your home mortgage payment impacts your loan term and the amount of interest paid with our home mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our lease vs buy calculator can assist you compare the short- and long-lasting expenses included with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we use flexible loaning choices and an unrivaled consumer experience. In addition to conventional home mortgage options like conventional loans and VA loans, we also provide a wide variety of non-QM loans.

Want to discover more about your home mortgage options? Connect today and we can assist you find a home mortgage that best aligns with your existing finances and long-term objectives.

Find the very best loan for you. Connect today!

Frequently Asked Questions

Is it much better to do monthly or biweekly home loan payments?

Finding the right payment schedule depends upon your specific needs. Biweekly home mortgage payments may be a better choice if:

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one additional home loan payment each year. It is very important to figure out whether there's room in your budget for this cost. You desire to pay your loan off more rapidly: Depending upon the terms of your loan, making biweekly payments will enable you to settle your loan a lot more rapidly. Use our biweekly mortgage calculator with additional payments to see how additional payments impact your loan term. You wish to pay less interest: Because you settle your loan more quickly with biweekly mortgage payments, your loan will have less time to accrue interest and you'll pay less interest in time. This can be especially useful to those with a fairly high home loan rate.

What are the downsides of making biweekly home mortgage payments?

The main disadvantage of biweekly home mortgage payments is the greater annual cost. Because you make 26 half-payments over the course of a year, or 13 full home mortgage payments, you'll make one extra loan payment annually. Depending upon your loan and financials, the additional payment can be a considerable burden to handle.

In some cases, biweekly payments may include additional costs. Some mortgage lenders charge an additional charge for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent concept to research whether switching to biweekly payments with your lender has any involved charges so that you can determine the true expense of biweekly payments.

Does making biweekly payments lower the quantity of interest I pay?

Yes. By switching to a biweekly payment schedule, you'll pay much less interest over the regard to your loan. Interest accrues as a percentage of your loan's staying balance. Because biweekly payments lower your staying balance at an accelerated speed, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the difference in overall interest paid on a mortgage that's paid month-to-month vs a mortgage that's paid biweekly.

Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a nationwide shop mortgage lending institution concentrating on 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage company. Lyons is viewed as a market leader and specialist in property financing. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons has the ability to stay up to date with essential modifications in the market to provide the most value to Griffin's clients. Under Lyons' management, Griffin Funding has actually made the Inc.
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