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 begin making biweekly home loan payments.

A regular monthly mortgage payment is standard for many lending institutions. On a monthly schedule, you make one home mortgage payment monthly, leading to 12 home loan payments each calendar year. When you pay your home loan on a biweekly schedule, nevertheless, you pay half of a mortgage payment every two weeks. Throughout a year, this results in 26 half payments or 13 complete home loan payments - one extra payment compared to a monthly schedule.

Curious what a biweekly mortgage payment may imply for your finances? Whether you're thinking about switching an existing home mortgage to biweekly payments or checking out a brand-new home loan, it's a great concept to get a clear picture of your payment alternatives. 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 use the biweekly mortgage calculator. First, enter the following information:

Principal loan balance: If you have not begun paying your home mortgage yet, this will be the total loan quantity. If you've been paying your mortgage, enter the loan balance that remains. Rates of interest: Enter the existing interest rate of your loan. Make certain to be exact to the decimal point. Loan term: The regard to your loan is the number of years till 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 info has been entered, all that's delegated do is press "Calculate".

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

Monthly home mortgage payments: First, the biweekly mortgage calculator tells you the details of what a month-to-month payment may look like. It computes your regular monthly payment amount, the total interest you'll pay over the lifetime of your loan, and the typical interest you'll pay monthly. Biweekly mortgage payments: Next, the biweekly home mortgage calculator provides the biweekly payment info. You'll see the biweekly home mortgage payment amount, total interest you'll pay over the life of the loan, and the typical interest paid per period. You'll notice that by making biweekly home loan payments, you can lower the total quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator displays a chart of your loan balance gradually when using regular monthly 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 decrease at a quicker rate and you'll pay off your loan in less time. The faster you pay off your loan, the less balance will remain that you need 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 between a regular monthly versus biweekly home loan payment schedule might appear very little, the additional month's home loan payment each year makes a huge difference in the long run. Benefits of biweekly payments include:

Paying off the loan faster: Because there's an extra loan payment every year, borrowers who make biweekly payments settle their loans much faster than regular monthly payment customers. Paying less overall interest: Because the loan is settled quicker, less primary loan balance remains to pay interest on. Gradually, this results in substantially less interest paid. The higher 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 mortgage, the amount you paid off becomes your equity in your home. When you pay off your home loan more rapidly with biweekly payments, you'll build equity quicker. This can be found in convenient if you decide to offer your home before the loan is paid off or if you want to get a home equity loan, home equity credit line, or cash-out refinance eventually.

Biweekly vs. Bimonthly Payments

Some lending institutions likewise provide the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, typically on the 1st and 15th. Just like making a regular monthly mortgage payment, this results in 12 payments each year. The only distinction is that payments are made in half, twice per month.

Making bimonthly mortgage payments can assist customers reduce the amount of interest paid over the life of the loan. However, they do not have as huge of an effect as biweekly mortgage payments, which help you pay off your loan much faster, pay less interest over time, and build equity in your house quicker.

That stated, bimonthly loan payments might be an excellent choice for some. People who earn money on a bimonthly schedule might find this payment schedule favorable. Some might discover that paying their loan instantly after receiving their paycheck works well for their capital and budgeting efforts. Others may simply feel much better paying a smaller sized amount two times each month, instead of paying a sum simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have numerous different loans with multiple various rates? Our mixed rate calculator averages these rates into a single rate of interest to help you better understand just 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 get approved for unique loans with a series of benefits, like low loan rates, no deposit, and more. Use this calculator to identify what a VA mortgage may appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent professional, use our bank statement calculator to see what kind of home loan you can receive using bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your rate of interest is a smart choice based on your finances. Debt Consolidation Calculator: A financial obligation consolidation loan rolls several financial obligations into a single payment, usually 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 using a VA loan. Mortgage Payoff Calculator: See how changing 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 buy calculator can assist you compare the short- and long-lasting expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible loaning alternatives and an unmatched consumer experience. In addition to traditional mortgage choices like standard loans and VA loans, we likewise use a wide variety of non-QM loans.

Wish to discover more about your home mortgage choices? Connect today and we can help you find a mortgage that finest lines up with your present financial resources and long-lasting objectives.

Find the best loan for you. Reach out today!

Frequently Asked Questions

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

Finding the right payment schedule depends upon your specific needs. Biweekly home mortgage payments might be a better option if:

You can pay for to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is necessary to determine whether there's space in your spending plan for this cost. You wish to pay your loan off more rapidly: Depending on the regards to your loan, making biweekly payments will allow you to settle your loan much more rapidly. Use our biweekly home loan calculator with additional payments to see how additional payments effect your loan term. You want to pay less interest: Because you settle your loan more rapidly with biweekly mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest over time. This can be particularly helpful to those with a reasonably high mortgage rate.

What are the disadvantages of making biweekly home mortgage payments?

The main drawback of biweekly home loan payments is the higher yearly expense. Because you make 26 half-payments throughout a year, or 13 full home loan payments, you'll make one additional loan payment annually. Depending on your loan and financials, the additional payment can be a substantial problem to take on.

In some cases, biweekly payments may feature extra costs. Some mortgage lenders charge an additional charge for biweekly payments or charge a charge for loans that are settled early. It's a good concept to research whether changing to biweekly payments with your lender has any associated charges so that you can calculate the real expense of biweekly payments.

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

Yes. By switching 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 remaining balance. Because biweekly payments lower your remaining balance at an accelerated pace, 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 month-to-month 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 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 expert in property 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 essential modifications in the industry to provide the most value to Griffin's customers. Under Lyons' management, Griffin Funding has made the Inc.
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