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 might be time to start making biweekly mortgage payments.

A regular monthly home loan payment is standard for a lot of loan providers. On a month-to-month schedule, you make one home loan payment every month, resulting in 12 mortgage payments each fiscal year. When you pay your home loan on a biweekly schedule, however, you pay half of a home loan payment every 2 weeks. Over the course of a year, this results in 26 or 13 complete home loan payments - one extra payment compared to a month-to-month schedule.

Curious what a biweekly home loan payment may mean for your financial resources? Whether you're believing about switching an existing mortgage to biweekly payments or checking out a new mortgage, it's a good concept to get a clear photo of your payment alternatives. Use our biweekly home loan calculator to determine the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly home mortgage calculator. First, go into the following information:

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 mortgage, get in the loan balance that stays. Rate of interest: Enter the current rates of interest of your loan. Ensure to be precise to the decimal point. Loan term: The term of your loan is the number of years until the loan is because of be settled. If you have a 30-year loan, your loan term is thirty years. Enter that info here.
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Once this information has been gone into, all that's left to do is press "Calculate".

Next, it's time to see your payoff outcomes. The biweekly home mortgage calculator takes this information and generates 2 different calculations:

Monthly home mortgage payments: First, the biweekly mortgage calculator informs you the details of what a regular monthly payment might appear like. It computes your monthly payment quantity, 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 information. You'll see the biweekly mortgage payment quantity, total interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll notice that by making biweekly mortgage payments, you can reduce the overall amount of interest paid over the life of the loan.

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

You'll see that with biweekly home mortgage payments, your loan balance will reduce at a faster rate and you'll settle your loan in less time. The faster you settle 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 might seem very little, the extra month's mortgage payment each year makes a big difference in the long run. Benefits of biweekly payments consist of:

Settling the loan faster: Because there's an additional loan payment every year, borrowers who make biweekly payments settle their loans much faster than monthly payment debtors. Paying less total interest: Because the loan is paid off faster, less principal loan balance stays to pay interest on. With time, this leads to significantly less interest paid. The greater your rates of interest, the more of a difference paying biweekly can make in the quantity of interest you pay. Building equity much faster: As you settle your mortgage, the quantity you paid off becomes your equity in your home. When you settle your home mortgage quicker with biweekly payments, you'll build equity quicker. This is available in helpful if you decide to sell your home before the loan is paid off or if you want to take out a home equity loan, home equity credit line, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

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

Making bimonthly mortgage payments can help borrowers reduce the amount of interest paid over the life of the loan. However, they don't have as huge of an impact as biweekly home mortgage payments, which assist you settle your loan faster, pay less interest with time, and build equity in your house much faster.
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That stated, bimonthly loan payments might be a great option for some. People who make money on a bimonthly schedule might discover this payment schedule beneficial. Some might discover that paying their loan right away after getting their paycheck works well for their cash flow and budgeting efforts. Others may just feel better paying a smaller quantity twice monthly, rather than paying a lump sum at one time.

Related Calculators

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

Blended Rate Calculator: Do you have multiple different loans with numerous different rates? Our mixed rate calculator averages these rates into a single rate of interest to help you much better understand how much you're paying in interest. DSCR Calculator: Use this tool to quickly approximate your debt service coverage ratio, which is a key metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers receive special loans with a series of benefits, like low loan rates, no down payment, and more. Use this calculator to identify what a VA home mortgage might 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 kind 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 rates of interest is a sensible decision based upon your financial resources. Debt Consolidation Calculator: A debt combination loan rolls several debts into a single payment, usually with a lower rate. See what a loan like this may look like based upon your current financial obligations. VA Loan Affordability Calculator: Estimate just how much home you can manage when utilizing a VA loan. Mortgage Payoff Calculator: See how changing your mortgage payment impacts 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 purchase? Our rent vs purchase calculator can assist you compare the brief- and long-lasting expenses involved with both alternatives.

Explore Flexible Mortgage Options

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

Want to learn more about your home loan options? Reach out today and we can help you discover a home mortgage that best lines up with your present financial resources and long-lasting objectives.

Find the very best loan for you. Connect today!

Frequently Asked Questions

Is it better to do monthly or biweekly mortgage payments?

Finding the right payment schedule depends on your specific requirements. Biweekly mortgage payments may be a much better choice if:

You can pay for to pay more money each year: On a biweekly payment schedule, you'll be making one additional mortgage payment each year. It is very important to identify whether there's room in your budget for this expense. You wish to pay your loan off faster: Depending upon the terms of your loan, making biweekly payments will enable you to settle your loan far more quickly. Use our biweekly home mortgage calculator with extra payments to see how extra payments effect your loan term. You wish to pay less interest: Because you pay off your loan quicker with biweekly home mortgage 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 reasonably high home loan rate.

What are the disadvantages of making biweekly home mortgage payments?

The main drawback of biweekly 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 additional loan payment each year. Depending on your loan and financials, the extra payment can be a considerable burden to take on.

In many cases, biweekly payments may feature additional expenses. Some home mortgage loan providers charge an extra fee for biweekly payments or charge a charge for loans that are settled early. It's a good idea to research study whether changing to biweekly payments with your lender has any involved charges so that you can determine the real 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 portion of your loan's staying balance. Because biweekly payments lower your staying balance at a sped up speed, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the distinction in total 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 shop mortgage lender concentrating on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as a market leader and professional 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' leadership, Griffin Funding has actually made the Inc.
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