What Is a Biweekly Mortgage Calculator?

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

A month-to-month home loan payment is standard for the majority of lenders. On a monthly schedule, you make one home mortgage payment every month, leading to 12 mortgage payments each calendar year. When you pay your mortgage on a biweekly schedule, however, you pay half of a home mortgage payment every 2 weeks. Throughout a year, this leads to 26 half payments or 13 full home mortgage payments - one additional payment compared to a monthly schedule.

Curious what a biweekly mortgage payment may suggest for your financial resources? Whether you're considering switching a current mortgage to biweekly payments or checking out a new home mortgage, it's a great concept to get a clear image of your payment choices. Use our biweekly home mortgage calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly mortgage calculator. First, get in the following info:

Principal loan balance: If you haven't begun paying your home mortgage yet, this will be the total loan amount. If you have actually been paying your home loan, go into the loan balance that stays. Rate of interest: Enter the current rates of interest of your loan. Make certain to be precise to the decimal point. Loan term: The term of your loan is the variety of years until the loan is because of be settled. If you have a 30-year loan, your loan term is 30 years. Enter that info here.

Once this info has been gotten in, all that's left to do is press "Calculate".

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

Monthly home mortgage payments: First, the biweekly mortgage calculator informs you the information of what a monthly payment might look like. It calculates your monthly payment quantity, the overall interest you'll pay over the lifetime of your loan, and the typical interest you'll pay each month. Biweekly home mortgage payments: Next, the biweekly home mortgage calculator offers the biweekly payment details. You'll see the biweekly home loan payment amount, overall interest you'll pay over the life of the loan, and the average interest paid per duration. You'll see that by making biweekly home loan payments, you can decrease the total quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly home mortgage calculator displays a chart of your loan balance with time when making use of monthly payments (the black line) versus biweekly payments (the red area), listed here as the "Accelerated Balance".

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

Benefits of Biweekly Payments

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

Paying off the loan faster: Because there's an additional loan payment every year, borrowers who make biweekly payments settle their loans much faster than month-to-month payment borrowers. Paying less overall interest: Because the loan is paid off faster, less principal loan balance remains to pay interest on. Gradually, this results in less interest paid. The greater your rates of interest, the more of a distinction paying biweekly can make in the quantity of interest you pay. Building equity quicker: As you settle your home loan, the amount you paid off becomes your equity in your home. When you pay off your home loan more quickly with biweekly payments, you'll develop equity quicker. This can be found in convenient if you decide to offer your home before the loan is settled or if you wish to take out a home equity loan, home equity credit line, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some lenders likewise use the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments each month, generally on the 1st and 15th. Similar to making a monthly home loan payment, this leads to 12 payments each year. The only distinction is that payments are made in half, twice per month.

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

That stated, bimonthly loan payments might be a great option for some. People who make money on a bimonthly schedule might find this payment schedule favorable. Some may discover that paying their loan instantly after getting their income works well for their money flow and budgeting efforts. Others may just feel better paying a smaller sized amount twice every month, instead of paying a lump amount all at when.

Related Calculators

Interested in other tools to improve your finances? We provide a series of calculators to help you understand the financial impacts of various types of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have multiple different loans with numerous various rates? Our blended rate calculator averages these rates into a single interest rate to help you much better comprehend how much you're paying in interest. DSCR Calculator: Use this tool to quickly estimate your financial obligation service coverage ratio, which is a crucial metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers receive special loans with a variety of benefits, like low loan rates, no down payment, 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 specialist, utilize our bank statement calculator to see what sort of home loan you can receive utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly buying down your interest rate is a smart decision based on your finances. Debt Consolidation Calculator: A financial obligation combination loan rolls numerous financial obligations into a single payment, typically with a lower rate. See what a loan like this might look like based on your existing financial obligations. VA Loan Affordability Calculator: Estimate just how much home you can afford when utilizing a VA loan. Mortgage Payoff Calculator: See how altering your mortgage payment effects your loan term and the quantity of interest paid with our mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our rent vs buy calculator can assist you compare the brief- and long-lasting expenses included with both choices.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible financing options and an unequaled customer experience. In addition to standard mortgage alternatives like traditional loans and VA loans, we also offer a vast array of non-QM loans.

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

Find the finest 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 on your specific requirements. Biweekly home mortgage payments may be a better choice if:

You can pay for to pay more cash each year: On a biweekly payment schedule, you'll be making one extra mortgage payment each year. It's important to determine whether there's room in your spending plan for this cost. You desire to pay your loan off quicker: Depending on the terms of your loan, making biweekly payments will allow you to pay off your loan much more rapidly. Use our biweekly mortgage calculator with additional payments to see how extra payments effect your loan term. You wish to pay less interest: Because you pay off your loan more quickly with biweekly home loan 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 reasonably high home loan rate.

What are the disadvantages of making biweekly home mortgage payments?

The main disadvantage of biweekly home loan payments is the greater annual expense. Because you make 26 half-payments over the course of a year, or 13 complete home loan payments, you'll make one extra loan payment yearly. Depending upon your loan and financials, the extra payment can be a significant burden to take on.

In many cases, biweekly payments may include extra expenses. Some home mortgage lending institutions charge an additional cost for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent idea to research whether switching to biweekly payments with your lender has any associated costs so that you can calculate 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 regard to your loan. Interest accrues as a percentage of your loan's staying balance. Because biweekly payments lower your staying balance at a sped up 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 regular monthly vs a mortgage that's paid biweekly.
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Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national boutique mortgage loan provider focusing on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is seen as an industry leader and professional in realty financing. Lyons has actually 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 crucial modifications in the market to provide the most worth to Griffin's clients. Under Lyons' management, Griffin Funding has actually made the Inc.
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