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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 might be time to begin making biweekly home loan payments.

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

Curious what a biweekly home mortgage payment may imply for your finances? Whether you're thinking of changing an existing home mortgage to biweekly payments or exploring a brand-new home loan, it's a good idea to get a clear photo of your payment alternatives. Use our biweekly home mortgage calculator to determine the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you haven't started paying your home loan yet, this will be the overall loan amount. If you have actually been paying your home loan, enter the loan balance that remains. Rate of interest: Enter the existing rates of interest of your loan. Make certain 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 30 years. Enter that details here.

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

Next, it's time to see your payoff outcomes. The biweekly home loan calculator takes this info and creates two various calculations:

Monthly home loan payments: First, the biweekly home mortgage calculator informs you the details of what a monthly payment may appear like. It computes your monthly payment amount, the overall interest you'll pay over the lifetime of your loan, and the typical interest you'll pay monthly. Biweekly home mortgage payments: Next, the biweekly home loan 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 average interest paid per duration. You'll see that by making biweekly home loan payments, you can lower the total amount of interest paid over the life of the loan.

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

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

Benefits of Biweekly Payments

While the distinction in between a monthly versus biweekly home loan payment schedule might appear minimal, the additional month's 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 extra loan payment every year, debtors who make biweekly payments pay off their loans much quicker than month-to-month payment borrowers. Paying less overall interest: Because the loan is paid off quicker, 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 much faster: As you settle your home loan, the amount you settled becomes your equity in your house. When you settle your home mortgage quicker with biweekly payments, you'll build equity much faster. This can be found in helpful if you choose to offer your home before the loan is paid off or if you desire to secure a home equity loan, home equity credit line, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

Some lending institutions also use the choice to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, generally on the first and 15th. Just like making a month-to-month mortgage payment, this results in 12 payments each year. The only difference is that payments are made in half, twice each month.

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

That stated, bimonthly loan payments may be a great alternative for some. People who get paid on a bimonthly schedule may discover this payment schedule beneficial. Some may discover that paying their loan immediately after receiving their paycheck works well for their cash circulation and budgeting efforts. Others may just feel better paying a smaller quantity two times every month, rather than paying a lump amount at one time.

Related Calculators

Interested in other tools to enhance your financial resources? We use 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 multiple various loans with numerous different rates? Our combined rate calculator averages these rates into a single rates of interest to help you better understand just how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your financial obligation service protection ratio, which is a key metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers get approved for special loans with a series of advantages, like low loan rates, no down payment, and more. Use this calculator to determine what a VA mortgage may appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent specialist, use our bank statement calculator to see what type of home loan you can receive using bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily purchasing down your rates of interest is a sensible choice based upon your financial resources. Debt Consolidation Calculator: A debt combination loan rolls multiple debts into a single payment, generally with a lower rate. See what a loan like this might appear like based upon your existing debts. VA Loan Affordability Calculator: Estimate how much home you can manage when utilizing a VA loan. Mortgage Payoff Calculator: See how altering your mortgage payment impacts your loan term and the amount of interest paid with our home mortgage benefit calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our lease vs purchase calculator can help you compare the short- and long-lasting costs included with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible loaning choices and an unmatched client experience. In addition to traditional mortgage options like standard loans and VA loans, we also use a vast array of non-QM loans.

Want to find out more about your home loan choices? Connect today and we can assist you find a home mortgage that best aligns with your existing financial resources and long-lasting goals.

Find the very best loan for you. Reach out today!

Asked Questions

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

Finding the ideal payment schedule depends on your particular needs. Biweekly mortgage payments may be a better option if:

You can afford to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is essential to figure out whether there's room in your budget plan for this cost. You desire to pay your loan off quicker: Depending upon the terms of your loan, making biweekly payments will allow you to pay off your loan much more quickly. Use our biweekly mortgage calculator with extra payments to see how additional payments impact your loan term. You want to pay less interest: Because you pay off your loan quicker with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest gradually. This can be specifically advantageous to those with a fairly high home mortgage rate.

What are the drawbacks of making biweekly home loan payments?

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

Sometimes, biweekly payments may come with additional costs. Some home loan loan providers charge an extra fee for biweekly payments or charge a charge for loans that are paid off early. It's a good concept to research study whether changing to biweekly payments with your loan provider has any associated fees so that you can compute the true expense of biweekly payments.

Does making biweekly payments minimize 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 accumulates as a percentage of your loan's remaining balance. Because biweekly payments lower your remaining balance at an accelerated rate, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the difference in total 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 national boutique mortgage lender focusing on providing 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 realty finance. Lyons has been included in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons has the ability to keep up with important changes in the industry to provide the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.
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