What Is a Biweekly Mortgage Calculator?

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

A month-to-month home mortgage payment is standard for the majority of loan providers. On a monthly schedule, you make one mortgage payment each month, leading to 12 mortgage payments each calendar year. When you pay your home mortgage on a biweekly schedule, nevertheless, you share of a home mortgage payment every two 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 mean for your finances? Whether you're believing about changing an existing home loan to biweekly payments or checking out a brand-new mortgage, it's a good concept to get a clear photo of your payment choices. Use our biweekly mortgage calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to use the biweekly mortgage calculator. First, enter the following information:

Principal loan balance: If you haven't started paying your home loan yet, this will be the overall loan quantity. If you have actually been paying your mortgage, enter the loan balance that remains. Rates of interest: Enter the existing rates of interest of your loan. Make sure to be specific down to the decimal point. Loan term: The regard to your loan is the variety of years up until the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that details here.

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

Next, it's time to see your benefit results. The biweekly home loan calculator takes this details and produces 2 different computations:

Monthly home loan payments: First, the biweekly mortgage calculator tells you the details of what a month-to-month payment may appear like. It calculates your monthly payment amount, the overall interest you'll pay over the life time of your loan, and the typical interest you'll pay every month. Biweekly home loan payments: Next, the biweekly mortgage calculator provides the biweekly payment details. 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 discover that by making biweekly home mortgage payments, you can reduce the total quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly home mortgage calculator displays a graph of your loan balance gradually when using monthly payments (the black line) versus biweekly payments (the red location), listed here as the "Accelerated Balance".

You'll see that with biweekly home loan payments, your loan balance will decrease at a much faster rate and you'll pay off your loan in less time. The quicker you pay off your loan, the less balance will remain 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 in between a regular monthly versus biweekly home loan payment schedule may seem minimal, the extra month's home loan payment each year makes a big difference in the long run. Benefits of biweekly payments consist of:

Paying off the loan quicker: Because there's an additional loan payment every year, borrowers who make biweekly payments pay off their loans much faster than monthly payment debtors. Paying less total interest: Because the loan is settled much faster, less primary loan balance remains to pay interest on. Over time, this results in considerably less interest paid. The greater your rates of interest, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity faster: As you pay off your home mortgage, the quantity you settled becomes your equity in your house. When you settle your mortgage quicker with biweekly payments, you'll build equity much faster. This can be found in convenient if you choose to offer your home before the loan is settled or if you want to get a home equity loan, home equity line of credit, or cash-out re-finance at some point.

Biweekly vs. Bimonthly Payments

Some loan providers likewise provide the option to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments every month, normally on the first and 15th. Much like making a month-to-month home loan payment, this results in 12 payments each year. The only difference is that payments are made in half, twice monthly.

Making bimonthly home mortgage payments can help borrowers decrease the quantity 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 assist you pay off your loan quicker, pay less interest gradually, and develop equity in your home faster.

That said, bimonthly loan payments might be a great alternative for some. People who make money on a bimonthly schedule might discover this payment schedule favorable. Some might find that paying their loan right away after getting their paycheck works well for their capital and budgeting efforts. Others might just feel better paying a smaller quantity two times every month, rather than paying a swelling amount simultaneously.

Related Calculators

Interested in other tools to enhance your financial resources? We provide a variety of calculators to help you comprehend the monetary effects of different types of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have multiple different loans with multiple different rates? Our combined rate calculator averages these rates into a single rates of interest to assist you much better understand how much you're paying in interest. DSCR Calculator: Use this tool to quickly approximate your debt service protection ratio, which is a key metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers receive unique loans with a variety of advantages, like low loan rates, no deposit, and more. Use this calculator to identify what a VA mortgage 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 type of mortgage you can qualify for utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly buying down your interest rate is a wise choice based on your financial resources. Debt Consolidation Calculator: A debt combination loan rolls numerous financial obligations into a single payment, generally with a lower rate. See what a loan like this may 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 changing your home mortgage payment effects 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 buy? Our lease vs purchase calculator can help you compare the brief- and long-lasting costs involved with both choices.

Explore Flexible Mortgage Options

At Griffin Funding, we use flexible lending alternatives and an unmatched client experience. In addition to conventional home mortgage choices like traditional loans and VA loans, we also use a large range of non-QM loans.

Wish to find out more about your mortgage options? Reach out today and we can assist you discover a mortgage that finest aligns with your existing finances and long-term objectives.

Find the best loan for you. Reach out today!

Frequently Asked Questions

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

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

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one additional home mortgage payment each year. It is essential to identify whether there's room in your budget for this cost. You wish to pay your loan off quicker: Depending on the terms of your loan, making biweekly payments will enable you to pay off your loan much more rapidly. Use our biweekly mortgage calculator with additional payments to see how additional payments effect your loan term. You want to pay less interest: Because you pay off your loan quicker with biweekly mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest over time. This can be specifically useful to those with a fairly high mortgage rate.

What are the disadvantages of making biweekly mortgage payments?

The primary downside of biweekly mortgage payments is the higher annual cost. Because you make 26 half-payments over the course of a year, or 13 full home loan payments, you'll make one additional loan payment yearly. Depending on your loan and financials, the extra payment can be a considerable problem to handle.

Sometimes, biweekly payments may come with additional expenses. Some mortgage lending institutions charge an extra charge for biweekly payments or charge a penalty for loans that are settled early. It's a great concept to research whether switching to biweekly payments with your loan provider has any associated costs so that you can compute the true cost of biweekly payments.

Does making biweekly payments reduce the amount 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 portion 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 in overall interest paid on a mortgage that's paid 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 concentrating on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is viewed as an industry leader and specialist in realty financing. Lyons has actually been included in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to keep up with crucial changes in the industry to provide the most worth to Griffin's clients. Under Lyons' management, Griffin Funding has actually made the Inc.
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