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What Is a Biweekly Mortgage Calculator?

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

A monthly home loan payment is basic for a lot of lending institutions. On a monthly schedule, you make one mortgage payment every month, resulting in 12 home loan payments each calendar year. When you pay your home loan on a biweekly schedule, however, you share of a home mortgage payment every 2 weeks. Throughout a year, this leads to 26 half payments or 13 complete home loan payments - one extra payment compared to a regular monthly schedule.

Curious what a biweekly mortgage payment may imply for your finances? Whether you're thinking about changing a current home mortgage to biweekly payments or checking out a brand-new home mortgage, it's a great concept to get a clear image of your payment alternatives. Use our biweekly home mortgage calculator to calculate the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to use the biweekly home loan calculator. First, go into the following info:

Principal loan balance: If you have not begun paying your home mortgage yet, this will be the overall loan quantity. If you've been paying your mortgage, get in the loan balance that remains. Rate of interest: Enter the present rate of interest of your loan. Make sure to be precise to the decimal point. Loan term: The regard to your loan is the variety of years until the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that information here.

Once this details has actually been gone into, all that's delegated do is press "Calculate".

Next, it's time to see your payoff results. The biweekly home mortgage calculator takes this info and produces 2 different estimations:

Monthly home loan payments: First, the biweekly mortgage calculator informs you the information of what a regular monthly payment may look like. It determines your monthly payment quantity, the overall interest you'll pay over the lifetime of your loan, and the typical interest you'll pay every month. Biweekly home mortgage payments: Next, the biweekly home loan calculator supplies the biweekly payment info. You'll see the biweekly home loan payment quantity, total interest you'll pay over the life of the loan, and the typical interest paid per period. You'll observe that by making biweekly home loan payments, you can reduce the total quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator shows a chart of your loan balance over 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 quicker rate and you'll settle your loan in less time. The quicker you settle your loan, the less balance will stay that you require to pay interest on. That indicates you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the difference in between a monthly versus biweekly home mortgage payment schedule may seem minimal, the extra month's mortgage payment each year makes a big difference in the long run. Benefits of consist of:

Paying off the loan faster: Because there's an additional loan payment every year, borrowers who make biweekly payments pay off their loans much quicker than monthly payment customers. Paying less total interest: Because the loan is settled faster, less principal loan balance stays to pay interest on. With time, this leads to considerably less interest paid. The greater your interest rate, the more of a distinction paying biweekly can make in the quantity of interest you pay. Building equity much faster: As you settle your home loan, the amount you settled becomes your equity in your house. When you pay off your home loan faster with biweekly payments, you'll construct equity quicker. This is available in useful if you choose to offer your home before the loan is paid off or if you wish to secure a home equity loan, home equity credit line, or cash-out refinance at some point.

Biweekly vs. Bimonthly Payments

Some lenders also offer the option to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments every month, generally on the 1st and 15th. Just like making a regular monthly home loan payment, this leads to 12 payments each year. The only difference is that payments are made in half, twice monthly.

Making bimonthly home loan payments can assist borrowers lower the amount of interest paid over the life of the loan. However, they don't have as big of an effect as biweekly home mortgage payments, which help you settle your loan faster, pay less interest over time, and construct equity in your house faster.

That said, bimonthly loan payments may be a great alternative for some. People who make money on a bimonthly schedule may discover this payment schedule favorable. Some may find that paying their loan right away after getting their paycheck works well for their money flow and budgeting efforts. Others might simply feel much better paying a smaller sized quantity twice every month, rather than paying a swelling sum all at once.

Related Calculators

Interested in other tools to enhance your finances? We provide a series of calculators to assist you comprehend the monetary effects of various kinds of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have numerous various loans with several different rates? Our blended rate calculator averages these rates into a single rate of interest to assist you better understand just how much you're paying in interest. DSCR Calculator: Use this tool to rapidly approximate your financial obligation service coverage ratio, which is a crucial metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers get approved for special loans with a series of benefits, like low loan rates, no deposit, and more. Use this calculator to determine what a VA home loan might look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, 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 temporarily buying down your interest rate is a smart choice based on your financial resources. Debt Consolidation Calculator: A financial obligation combination loan rolls several financial obligations into a single payment, generally with a lower rate. See what a loan like this might appear like based upon your present debts. VA Loan Affordability Calculator: Estimate how much home you can afford when utilizing a VA loan. Mortgage Payoff Calculator: See how changing your home mortgage payment effects your loan term and the quantity of interest paid with our home mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should rent or buy? Our rent vs buy calculator can assist you compare the brief- and long-lasting expenses involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile loaning choices and an unrivaled client experience. In addition to standard home loan alternatives like conventional loans and VA loans, we likewise use a vast array of non-QM loans.

Wish to find out more about your mortgage alternatives? Connect today and we can assist you find a home mortgage that finest lines up with your current finances and long-lasting objectives.

Find the very best loan for you. Connect today!

Frequently Asked Questions

Is it better to do regular monthly or biweekly home mortgage payments?

Finding the best payment schedule depends upon your specific requirements. Biweekly home mortgage payments may be a better option if:

You can manage to pay more money each year: On a biweekly payment schedule, you'll be making one additional mortgage payment each year. It is necessary to identify whether there's space in your spending plan for this expense. You wish to pay your loan off quicker: Depending on the regards to your loan, making biweekly payments will enable you to settle your loan a lot more quickly. Use our biweekly mortgage calculator with extra payments to see how additional payments impact your loan term. You wish to pay less interest: Because you settle your loan faster with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest gradually. This can be particularly advantageous to those with a relatively high home mortgage rate.

What are the disadvantages of making biweekly home loan payments?

The main disadvantage of biweekly home mortgage payments is the higher annual cost. Because you make 26 half-payments throughout a year, or 13 complete mortgage payments, you'll make one extra loan payment yearly. Depending on your loan and financials, the additional payment can be a considerable concern to handle.

In some cases, biweekly payments might include extra costs. Some home mortgage loan providers charge an extra fee for biweekly payments or charge a penalty for loans that are paid off early. It's a great idea to research study whether changing to biweekly payments with your loan provider has any involved fees so that you can compute the true expense of biweekly payments.

Does making biweekly payments reduce the amount of interest I pay?

Yes. By changing to a biweekly payment schedule, you'll pay much less interest over the term of your loan. Interest accrues as a portion of your loan's staying balance. Because biweekly payments lower your staying balance at an accelerated pace, 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 monthly 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 store mortgage loan provider focusing on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage company. Lyons is viewed as a market leader and specialist in real estate finance. 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 important changes in the market to deliver the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.
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