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 may be time to begin making biweekly home mortgage payments.
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A month-to-month home loan payment is standard for a lot of loan providers. On a monthly schedule, you make one home loan payment monthly, resulting in 12 home loan payments each calendar year. When you pay your mortgage on a biweekly schedule, nevertheless, you share of a mortgage payment every two weeks. Throughout a year, this results in 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 suggest for your finances? Whether you’re believing about switching a current mortgage to biweekly payments or checking out a brand-new home loan, it’s a great idea to get a clear photo of your payment choices. Use our biweekly home loan calculator to calculate the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It’s easy to use the biweekly home mortgage calculator. First, go into the following information:

Principal loan balance: If you have not started paying your mortgage yet, this will be the overall loan amount. If you have actually been paying your mortgage, go into the loan balance that stays. Rate of interest: Enter the present rates of interest of your loan. Ensure to be specific 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 30 years. Enter that details here.

Once this information has been gotten in, all that’s delegated do is press “Calculate”.

Next, it’s time to see your benefit outcomes. The biweekly mortgage calculator takes this info and creates 2 different estimations:

Monthly home loan payments: First, the biweekly mortgage calculator informs you the details of what a month-to-month payment might appear like. It calculates your regular monthly payment amount, the total interest you’ll pay over the lifetime of your loan, and the average interest you’ll pay monthly. Biweekly home loan payments: Next, the biweekly mortgage calculator supplies 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 typical interest paid per duration. You’ll discover 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 home mortgage calculator displays a chart of your loan balance over time when using monthly payments (the black line) versus biweekly payments (the red area), noted 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 settle 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 implies 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 appear minimal, the extra month’s home mortgage payment each year makes a huge difference in the long run. Benefits of biweekly payments include:

Paying off the loan quicker: Because there’s an extra loan payment every year, customers who make biweekly payments settle their loans much quicker than regular monthly payment borrowers. Paying less total interest: Because the loan is settled quicker, less primary loan balance stays to pay interest on. Over time, this results in substantially less interest paid. The greater your rate of interest, the more of a distinction paying biweekly can make in the amount of interest you pay. Building equity much faster: As you settle your mortgage, the quantity you settled becomes your equity in your house. When you settle your home mortgage faster with biweekly payments, you’ll build equity faster. This comes in helpful if you choose to offer your home before the loan is paid off or if you wish to get a home equity loan, home equity credit line, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

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

Making bimonthly mortgage payments can assist debtors minimize the quantity of interest paid over the life of the loan. However, they don’t have as huge of an impact as biweekly home loan payments, which help you settle your loan quicker, pay less interest over time, and construct equity in your home quicker.

That stated, bimonthly loan payments may be an excellent choice for some. People who earn money on a bimonthly schedule may find this payment schedule beneficial. Some may discover that paying their loan instantly after receiving their income works well for their money flow and budgeting efforts. Others may simply feel better paying a smaller quantity twice every month, rather than paying a lump sum simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have several various loans with numerous various rates? Our combined rate calculator averages these rates into a single rate of interest to assist you much better understand how much you’re paying in interest. DSCR Calculator: Use this tool to quickly estimate your debt service coverage ratio, which is an essential metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers get approved for special loans with a variety of benefits, like low loan rates, no down payment, and more. Use this calculator to identify 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 kind of home mortgage you can receive using bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your interest rate is a sensible decision based upon your financial resources. Debt Consolidation Calculator: A debt combination 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 current debts. VA Loan Affordability Calculator: Estimate how much home you can afford when utilizing a VA loan. Mortgage Payoff Calculator: See how altering your mortgage payment effects your loan term and the quantity of interest paid with our home loan benefit calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our lease vs buy calculator can help you compare the brief- and long-term costs involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible lending options and an unrivaled customer experience. In addition to traditional home mortgage choices like traditional loans and VA loans, we likewise provide a broad variety of non-QM loans.

Want to learn more about your home loan alternatives? Reach out today and we can help you find a home mortgage that finest aligns with your current finances and long-lasting goals.

Find the finest loan for you. Connect today!

Frequently Asked Questions

Is it better to do month-to-month or biweekly mortgage payments?

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

You can manage to pay more money each year: On a biweekly payment schedule, you’ll be making one additional home loan payment each year. It is very important to determine whether there’s space in your budget for this cost. You wish to pay your loan off quicker: Depending upon the regards to your loan, making biweekly payments will enable you to settle your loan far more quickly. Use our biweekly home loan calculator with additional payments to see how extra payments impact your loan term. You want to pay less interest: Because you pay off your loan more rapidly with biweekly mortgage payments, your loan will have less time to accumulate interest and you’ll pay less interest in time. This can be especially helpful to those with a fairly high mortgage rate.

What are the downsides of making biweekly home loan payments?

The primary downside of biweekly mortgage payments is the greater annual cost. Because you make 26 half-payments throughout a year, or 13 complete home mortgage payments, you’ll make one extra loan payment annually. Depending upon your loan and financials, the extra payment can be a substantial burden to handle.

In many cases, biweekly payments might come with additional expenses. Some institutions charge an extra fee for biweekly payments or charge a penalty for loans that are settled early. It’s a good concept to research study whether changing to biweekly payments with your lender has any involved charges so that you can calculate the true expense of biweekly payments.

Does making biweekly payments lower 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 percentage of your loan’s remaining balance. Because biweekly payments lower your staying 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 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 store mortgage lending institution concentrating on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is viewed as a market leader and professional 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 is able to keep up with essential modifications in the industry to provide the most value to Griffin’s customers. Under Lyons’ management, Griffin Funding has actually made the Inc.
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