What Is a Biweekly Mortgage Calculator?

Interested in paying your mortgage off faster and paying less interest over the life of your loan? It may be time to begin making biweekly home mortgage payments.
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A monthly home mortgage payment is basic for many lenders. On a monthly schedule, you make one home loan payment monthly, resulting in 12 mortgage payments each calendar year. When you pay your home loan on a biweekly schedule, however, you pay half of a mortgage payment every two weeks. Throughout a year, this results in 26 half payments or 13 full home loan payments - one additional payment compared to a month-to-month schedule.

Curious what a biweekly mortgage payment may imply for your financial resources? Whether you're thinking of switching an existing home loan to biweekly payments or checking out a new mortgage, it's a great idea to get a clear photo of your payment alternatives. Use our biweekly home mortgage calculator to compute the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to use 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 total loan amount. If you've been paying your home mortgage, enter the loan balance that stays. Interest rate: Enter the current rate of interest of your loan. Make certain to be specific to the decimal point. Loan term: The term of your loan is the variety of years up 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.

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

Next, it's time to see your benefit outcomes. The biweekly home mortgage calculator takes this info and generates two various computations:

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

Under the calculator results, the biweekly mortgage calculator displays a chart of your loan balance over 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 mortgage payments, your loan balance will reduce at a quicker rate and you'll settle your loan in less time. The faster you settle your loan, the less balance will remain that you require 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 month-to-month versus biweekly home mortgage payment schedule may seem minimal, the additional month's home mortgage payment each year makes a huge difference in the long run. Benefits of biweekly payments consist of:

Settling the loan faster: Because there's an extra loan payment every year, customers who make biweekly payments pay off their loans much faster than regular monthly payment debtors. Paying less general interest: Because the loan is settled much faster, less principal loan balance remains to pay interest on. In time, this leads to significantly less interest paid. The higher your interest rate, the more of a difference paying biweekly can make in the quantity of interest you pay. Building equity faster: As you pay off your mortgage, the quantity you paid off becomes your equity in your home. When you pay off your mortgage faster with biweekly payments, you'll construct equity much faster. This can be found in useful if you choose to offer your home before the loan is paid off or if you desire to take out a home equity loan, home equity credit line, or cash-out refinance eventually.

Biweekly vs. Bimonthly Payments

Some lending institutions also provide the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, usually on the first and 15th. Just like making a regular monthly mortgage payment, this leads to 12 payments each year. The only distinction is that payments are made in half, twice per month.

Making bimonthly home loan payments can assist borrowers minimize the quantity of interest paid over the life of the loan. However, they don't have as huge of an impact as biweekly mortgage payments, which assist you pay off your loan quicker, pay less interest with time, and develop equity in your house faster.

That said, bimonthly loan payments might be a great choice for some. People who get paid on a bimonthly schedule may discover this payment schedule beneficial. Some might discover that paying their loan immediately after receiving their paycheck works well for their capital and budgeting efforts. Others might just feel better paying a smaller quantity two times each month, rather than paying a swelling amount simultaneously.

Related Calculators

Interested in other tools to enhance your finances? We offer a variety of calculators to assist you understand the financial impacts of various types of loan payments, interest rates, and more:

Blended Rate Calculator: Do you have numerous various loans with several different rates? Our mixed rate calculator averages these rates into a single rates of interest to help you much better comprehend just how much you're paying in interest. DSCR Calculator: Use this tool to rapidly approximate your financial obligation service protection ratio, which is an essential metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers certify for special loans with a series of advantages, like low loan rates, no deposit, and more. Use this calculator to determine what a VA home 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 mortgage you can qualify for utilizing bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your rate of interest is a sensible choice based on your financial resources. Debt Consolidation Calculator: A financial obligation consolidation loan rolls numerous debts into a single payment, normally with a lower rate. See what a loan like this might appear like based on your current 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 quantity of interest paid with our mortgage benefit calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs buy calculator can assist you compare the brief- and long-lasting costs involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible financing alternatives and an unequaled consumer experience. In addition to conventional home mortgage alternatives like traditional loans and VA loans, we likewise use a wide variety of non-QM loans.

Wish to find out more about your home mortgage alternatives? Reach out today and we can help you find a home loan that finest aligns with your current financial resources 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 loan payments?

Finding the best payment schedule depends upon your particular needs. Biweekly home loan payments may be a much better choice if:

You can afford to pay more money each year: On a biweekly payment schedule, you'll be making one additional mortgage payment each year. It is essential to determine whether there's room in your budget for this expense. You want to pay your loan off faster: Depending upon the regards to your loan, making biweekly payments will enable you to pay off your loan much more quickly. Use our biweekly mortgage calculator with additional payments to see how extra payments impact your loan term. You wish to pay less interest: Because you pay off your loan faster with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest with time. This can be especially helpful to those with a relatively high home mortgage rate.

What are the disadvantages of making biweekly mortgage payments?

The primary drawback of biweekly mortgage payments is the higher yearly expense. Because you make 26 half-payments over the course of a year, or 13 full mortgage payments, you'll make one additional loan payment every year. Depending on your loan and financials, the additional payment can be a considerable concern to take on.

In many cases, biweekly payments may include additional expenses. Some mortgage loan providers charge an extra charge for biweekly payments or charge a charge for loans that are settled early. It's an excellent idea to research study whether changing to biweekly payments with your lending institution has any associated costs so that you can compute the real cost of biweekly payments.

Does making biweekly payments decrease 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 accumulates as a percentage of your loan's remaining balance. Because biweekly payments lower your staying balance at an accelerated 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 regular 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 national boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the . Lyons is seen as an industry leader and expert in property financing. Lyons has been included in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to stay up to date with essential changes in the market to deliver the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.
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