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 mortgage payments.

A month-to-month home loan payment is basic for the majority of lenders. On a month-to-month schedule, you make one home mortgage payment every month, leading to 12 home loan payments each calendar year. When you pay your home mortgage on a biweekly schedule, nevertheless, you share of a mortgage payment every two weeks. Over the course of a year, this leads to 26 half payments or 13 complete mortgage payments - one extra payment compared to a regular monthly schedule.

Curious what a biweekly home loan payment may suggest for your financial resources? Whether you're thinking of switching an existing mortgage to biweekly payments or exploring a brand-new mortgage, it's an excellent concept to get a clear photo of your payment alternatives. Use our biweekly mortgage calculator to calculate the difference that biweekly payments can make.
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How Does the Biweekly Mortgage Calculator Work?

It's simple to use the biweekly home loan calculator. First, get in the following information:

Principal loan balance: If you have not started paying your mortgage yet, this will be the total loan amount. If you've been paying your home mortgage, enter the loan balance that remains. Rates of interest: Enter the current rate of interest of your loan. Make sure to be precise to the decimal point. Loan term: The regard to your loan is the number of years up until the loan is because of be paid off. If you have a 30-year loan, your loan term is 30 years. Enter that information here.

Once this information has been entered, all that's left to do is press "Calculate".

Next, it's time to see your reward results. The biweekly home mortgage calculator takes this information and creates two various computations:

Monthly home mortgage payments: First, the biweekly home mortgage calculator tells you the details of what a monthly payment might look like. It calculates your month-to-month payment amount, the total interest you'll pay over the lifetime of your loan, and the typical interest you'll pay every month. Biweekly home loan payments: Next, the biweekly home loan calculator supplies the biweekly payment info. 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 see 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 home loan calculator shows a chart of your in time 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 settle your loan in less time. The faster you settle your loan, the less balance will stay 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 distinction between a regular monthly versus biweekly home loan payment schedule may appear minimal, the additional month's home loan payment each year makes a big distinction in the long run. Benefits of biweekly payments include:

Paying off the loan quicker: Because there's an additional loan payment every year, borrowers who make biweekly payments settle their loans much faster than month-to-month payment customers. Paying less general interest: Because the loan is settled much faster, less primary loan balance stays to pay interest on. In time, this leads to substantially less interest paid. The greater your rates of interest, the more of a distinction paying biweekly can make in the quantity of interest you pay. Building equity quicker: As you settle your mortgage, the amount you settled becomes your equity in your house. When you settle your home loan faster with biweekly payments, you'll build equity much faster. This comes in handy if you decide to sell your home before the loan is paid off or if you wish to take out a home equity loan, home equity credit line, or cash-out re-finance at some point.

Biweekly vs. Bimonthly Payments

Some loan providers also provide the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, normally on the 1st and 15th. Similar to making a regular monthly home mortgage payment, this leads to 12 payments each year. The only difference is that payments are made in half, two times each month.

Making bimonthly home mortgage payments can assist debtors lower the quantity of interest paid over the life of the loan. However, they do not have as big of an effect as biweekly home loan payments, which assist you pay off your loan faster, pay less interest over time, and build equity in your home faster.

That said, bimonthly loan payments might be a great option for some. People who get paid on a bimonthly schedule may find this payment schedule favorable. Some may find that paying their loan immediately after getting their income works well for their capital and budgeting efforts. Others may simply feel better paying a smaller amount two times monthly, instead of paying a swelling sum simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have numerous various loans with multiple various rates? Our combined rate calculator averages these rates into a single rates of interest to assist you much better comprehend just how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your financial obligation service protection ratio, which is an essential metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers get approved for special loans with a range of advantages, like low loan rates, no deposit, and more. Use this calculator to identify what a VA mortgage might appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank statement calculator to see what kind of mortgage you can get approved for utilizing bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your rate of interest is a smart decision based on your financial resources. Debt Consolidation Calculator: A debt consolidation loan rolls several financial obligations into a single payment, typically with a lower rate. See what a loan like this might look like based upon your current debts. VA Loan Affordability Calculator: Estimate just how much home you can pay for when utilizing a VA loan. Mortgage Payoff Calculator: See how changing your home loan payment impacts your loan term and the amount of interest paid with our home mortgage payoff calculator. Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our lease vs buy calculator can help you compare the short- and long-term costs involved with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile financing alternatives and an unequaled consumer experience. In addition to traditional home mortgage alternatives like standard loans and VA loans, we likewise provide a vast array of non-QM loans.

Wish to discover more about your home loan choices? Connect today and we can assist you find a mortgage that finest aligns with your current financial resources and long-lasting goals.

Find the very best loan for you. Reach out today!

Frequently Asked Questions

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

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

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home mortgage payment each year. It is essential to figure out whether there's room in your budget for this expense. You want to pay your loan off faster: Depending on the regards to your loan, making biweekly payments will allow you to pay off your loan far more quickly. Use our biweekly mortgage calculator with extra payments to see how additional payments impact your loan term. You wish to pay less interest: Because you settle your loan faster with biweekly mortgage 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 downsides of making biweekly home mortgage payments?

The primary disadvantage of biweekly home loan payments is the greater annual expense. Because you make 26 half-payments throughout a year, or 13 complete mortgage payments, you'll make one extra loan payment yearly. Depending on your loan and financials, the additional payment can be a significant problem to handle.

In some cases, biweekly payments may come with additional expenses. Some home mortgage lending institutions charge an additional fee for biweekly payments or charge a penalty for loans that are paid off 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 calculate the true expense of biweekly payments.

Does making biweekly payments lower the quantity of interest I pay?

Yes. By changing to a biweekly payment schedule, you'll pay much less interest over the term of your loan. Interest accumulates as a portion of your loan's remaining balance. Because biweekly payments lower your remaining 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 month-to-month 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 loan provider 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 expert in property finance. 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 important changes in the market to provide the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.
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