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 start making biweekly home mortgage payments.

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

Curious what a biweekly mortgage payment may suggest for your finances? Whether you're thinking of switching a current home mortgage to biweekly payments or exploring a new home loan, it's a great concept to get a clear picture of your payment choices. Use our biweekly home loan calculator to compute the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you have not started paying your home loan yet, this will be the total loan amount. If you've been paying your home loan, go into the loan balance that stays. Rates of interest: Enter the present rates of interest of your loan. Make certain to be precise to the decimal point. Loan term: The term of your loan is the variety of years till the loan is due to be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that info here.

Once this details has been gotten in, all that's left to do is press "Calculate".

Next, it's time to see your payoff results. The biweekly home loan calculator takes this information and generates 2 various estimations:

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

Under the calculator results, the biweekly home mortgage calculator shows a graph of your loan balance in time when making use of monthly (the black line) versus biweekly payments (the red area), noted 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 quicker you pay off your loan, the less balance will stay that you require to pay interest on. That suggests 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 mortgage payment schedule might seem very little, the extra month's home loan payment each year makes a huge difference in the long run. Benefits of biweekly payments consist of:

Paying off the loan quicker: Because there's an additional loan payment every year, borrowers who make biweekly payments settle their loans much quicker than month-to-month payment customers. Paying less total interest: Because the loan is paid off faster, less primary loan balance stays to pay interest on. Gradually, this leads to substantially less interest paid. The greater your rate of interest, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity faster: As you settle your home mortgage, the amount you settled becomes your equity in your house. When you settle your home mortgage more quickly with biweekly payments, you'll build equity quicker. This is available in helpful if you decide to offer 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 re-finance at some time.

Biweekly vs. Bimonthly Payments

Some lending institutions also offer the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, usually on the 1st and 15th. Just like making a monthly home loan payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times each month.

Making bimonthly home loan payments can help customers reduce the quantity of interest paid over the life of the loan. However, they do not have as huge of an impact as biweekly home loan payments, which help you pay off your loan faster, pay less interest with time, and build equity in your home much faster.

That stated, bimonthly loan payments might be a good alternative for some. People who make money on a bimonthly schedule may discover this payment schedule beneficial. Some might discover that paying their loan instantly after getting their paycheck works well for their cash flow and budgeting efforts. Others may just feel better paying a smaller quantity two times monthly, instead of paying a lump amount simultaneously.
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Related Calculators

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

Blended Rate Calculator: Do you have multiple different loans with several various rates? Our combined rate calculator averages these rates into a single rates of interest to help you better comprehend how much you're paying in interest. DSCR Calculator: Use this tool to quickly estimate your debt service protection ratio, which is a key metric in determining 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 loan may look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank statement calculator to see what type 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 interest rate is a smart choice based on your finances. Debt Consolidation Calculator: A financial obligation combination loan rolls numerous financial obligations into a single payment, usually with a lower rate. See what a loan like this may look like based on your current debts. VA Loan Affordability Calculator: Estimate just how much home you can manage when using a VA loan. Mortgage Payoff Calculator: See how altering your home mortgage payment impacts your loan term and the quantity of interest paid with our mortgage benefit calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our lease vs buy calculator can assist you compare the brief- and long-lasting expenses involved with both choices.

Explore Flexible Mortgage Options

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

Want to find out more about your mortgage choices? Reach out today and we can help you find a home loan that best lines up with your current finances and long-term goals.

Find the best loan for you. Connect today!

Frequently Asked Questions

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

Finding the ideal payment schedule depends on your specific needs. Biweekly home mortgage payments may be a much better option 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 necessary to determine whether there's room in your spending plan for this expense. You wish to pay your loan off faster: Depending upon the regards to your loan, making biweekly payments will enable you to settle your loan far more rapidly. Use our biweekly home loan calculator with additional payments to see how extra payments effect your loan term. You desire to pay less interest: Because you pay off your loan more quickly with biweekly home mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest over time. This can be specifically beneficial to those with a reasonably high mortgage rate.
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What are the downsides of making biweekly home mortgage payments?

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

In many cases, biweekly payments might include extra costs. Some mortgage loan providers charge an extra cost for biweekly payments or charge a penalty for loans that are settled early. It's a great concept to research study whether switching to biweekly payments with your lender has any involved costs so that you can calculate the true cost 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 accumulates as a percentage of your loan's remaining balance. Because biweekly payments lower your remaining balance at a sped up pace, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the difference 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 lending institution focusing on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage company. Lyons is viewed as an industry 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 is able to keep up with important changes in the industry to deliver the most value to Griffin's clients. Under Lyons' management, Griffin Funding has made the Inc.
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