What Is a Biweekly Mortgage Calculator?

Interested in paying your mortgage off faster and paying less interest over the life of your loan? It might be time to start making biweekly mortgage payments.

A month-to-month mortgage payment is standard for most lending institutions. On a regular monthly schedule, you make one mortgage payment each month, resulting in 12 home loan payments each fiscal year. When you pay your mortgage on a biweekly schedule, however, you pay half of a home mortgage payment every 2 weeks. Throughout a year, this leads to 26 half payments or 13 complete mortgage payments - one extra payment compared to a month-to-month schedule.
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Curious what a biweekly home loan payment may suggest for your financial resources? Whether you're believing about switching a current home mortgage to biweekly payments or exploring a new home mortgage, it's a great idea to get a clear picture of your payment options. Use our biweekly home mortgage calculator to determine the distinction that biweekly payments can make.

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 begun paying your home loan yet, this will be the overall loan amount. If you've been paying your home loan, enter the loan balance that remains. Rate of interest: Enter the current rate of interest of your loan. Make sure to be exact to the decimal point. Loan term: The term of your loan is the variety of years till the loan is because of be settled. If you have a 30-year loan, your loan term is thirty years. Enter that information here.

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

Next, it's time to see your reward outcomes. The biweekly mortgage calculator takes this information and generates 2 various estimations:

Monthly mortgage payments: First, the biweekly mortgage calculator informs you the information of what a monthly payment might appear like. It computes your regular monthly payment quantity, the total interest you'll pay over the lifetime of your loan, and the typical interest you'll pay monthly. Biweekly home mortgage payments: Next, the biweekly mortgage calculator offers the biweekly payment info. You'll see the biweekly home loan payment amount, total interest you'll pay over the life of the loan, and the interest paid per duration. You'll see that by making biweekly home loan payments, you can decrease the total quantity 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 making use of monthly payments (the black line) versus biweekly payments (the red location), listed here as the "Accelerated Balance".
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You'll see that with biweekly home loan payments, your loan balance will reduce at a much faster 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 suggests you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the distinction between a month-to-month versus biweekly mortgage payment schedule may appear very little, the extra month's 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 pay off their loans much faster than month-to-month payment debtors. Paying less general interest: Because the loan is settled faster, less primary loan balance stays to pay interest on. Over time, this results in significantly less interest paid. The higher your rates of interest, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity much faster: As you settle your home mortgage, the quantity you settled becomes your equity in your home. When you settle your home loan more quickly with biweekly payments, you'll develop equity faster. This can be found in handy if you choose to offer your home before the loan is settled or if you want to secure a home equity loan, home equity line of credit, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some loan providers also offer the choice to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, normally on the first and 15th. Similar to making a regular monthly home loan 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 borrowers reduce the quantity of interest paid over the life of the loan. However, they don't have as big of an effect as biweekly home loan payments, which help you pay off your loan faster, pay less interest with time, and build equity in your house much faster.

That stated, bimonthly loan payments may be an excellent choice for some. People who make money on a bimonthly schedule might find this payment schedule beneficial. Some might find that paying their loan instantly after receiving their paycheck works well for their capital and budgeting efforts. Others might just feel better paying a smaller amount twice every month, instead of paying a swelling amount simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have multiple different loans with multiple various rates? Our blended rate calculator averages these rates into a single rates of interest to help you much better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your financial obligation service coverage ratio, which is an essential metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers qualify 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 might appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank declaration calculator to see what type of home mortgage you can qualify for utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily purchasing down your interest rate is a smart choice based on your financial resources. Debt Consolidation Calculator: A debt consolidation loan rolls numerous financial obligations into a single payment, typically 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 afford when utilizing a VA loan. Mortgage Payoff Calculator: See how changing your home mortgage payment impacts your loan term and the amount of interest paid with our mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs buy calculator can assist you compare the short- and long-term expenses included with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible financing choices and an unequaled customer experience. In addition to traditional mortgage choices like standard loans and VA loans, we also use a vast array of non-QM loans.

Want to find out more about your home loan choices? Reach out today and we can help you find a mortgage that best aligns with your present financial resources and long-lasting objectives.

Find the very best loan for you. Connect today!

Frequently Asked Questions

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

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

You can afford to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home mortgage payment each year. It's important to identify whether there's room in your budget plan for this cost. You desire to pay your loan off faster: Depending on the regards to your loan, making biweekly payments will allow you to pay off your loan much more rapidly. Use our biweekly home loan calculator with additional payments to see how extra payments effect your loan term. You wish to pay less interest: Because you settle your loan faster with biweekly home mortgage payments, your loan will have less time to accrue interest and you'll pay less interest gradually. This can be specifically advantageous to those with a fairly high mortgage rate.

What are the disadvantages of making biweekly mortgage payments?

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

Sometimes, biweekly payments might come with extra costs. Some home loan lenders charge an additional charge for biweekly payments or charge a charge for loans that are settled early. It's an excellent idea to research study whether switching to biweekly payments with your lending institution has any associated costs so that you can calculate the true cost of biweekly payments.

Does making biweekly payments reduce the quantity 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 portion of your loan's remaining balance. Because biweekly payments lower your remaining balance at a sped up rate, 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 delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as an industry leader and specialist 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 has the ability to keep up with essential changes in the industry to deliver the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.
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