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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 might be time to begin making biweekly mortgage payments.
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A monthly home mortgage payment is standard for the of lenders. On a monthly schedule, you make one home loan payment each month, leading to 12 mortgage payments each calendar year. When you pay your home mortgage on a biweekly schedule, nevertheless, you pay half of a home loan payment every two weeks. Over the course of a year, this results in 26 half payments or 13 complete home mortgage payments - one extra payment compared to a month-to-month schedule.

Curious what a biweekly mortgage payment may indicate for your financial resources? Whether you're thinking of changing a current home loan to biweekly payments or checking out a brand-new mortgage, it's a great idea to get a clear image of your payment choices. Use our biweekly home mortgage calculator to compute the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to utilize the biweekly home loan calculator. First, get in the following details:

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 mortgage, go into the loan balance that remains. Rate of interest: Enter the current interest rate of your loan. Make certain to be exact to the decimal point. Loan term: The term of your loan is the number of years till the loan is due to be paid off. If you have a 30-year loan, your loan term is 30 years. Enter that information here.

Once this info has actually been gone into, all that's left to do is press "Calculate".

Next, it's time to see your payoff results. The biweekly home mortgage calculator takes this info and produces 2 different estimations:

Monthly mortgage payments: First, the biweekly home loan calculator tells you the details of what a month-to-month payment might appear like. It calculates your month-to-month payment quantity, the overall interest you'll pay over the lifetime of your loan, and the average interest you'll pay monthly. Biweekly mortgage payments: Next, the biweekly mortgage calculator offers the biweekly payment information. You'll see the biweekly mortgage payment quantity, total interest you'll pay over the life of the loan, and the average interest paid per period. You'll observe that by making biweekly mortgage payments, you can decrease the total quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator displays a graph of your loan balance with 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 home loan payments, your loan balance will decrease at a much faster rate and you'll settle your loan in less time. The more quickly you settle 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 between a monthly versus biweekly home loan payment schedule may appear minimal, the additional 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 additional loan payment every year, customers who make biweekly payments settle their loans much quicker than regular monthly payment borrowers. Paying less overall interest: Because the loan is paid off much faster, less primary loan balance stays to pay interest on. Gradually, this leads to considerably less interest paid. The higher your interest rate, the more of a distinction paying biweekly can make in the amount of interest you pay. Building equity quicker: As you settle your mortgage, the quantity you paid off becomes your equity in your home. When you pay off your mortgage more quickly with biweekly payments, you'll construct equity much faster. This can be found in useful if you decide to offer your home before the loan is paid off or if you wish to secure a home equity loan, home equity credit line, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some lenders likewise offer the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, generally on the first and 15th. Much like making a monthly mortgage payment, this leads to 12 payments each year. The only difference is that payments are made in half, two times monthly.

Making bimonthly home mortgage payments can assist debtors minimize the amount 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 assist you pay off your loan faster, pay less interest with time, and build equity in your home faster.

That stated, bimonthly loan payments might be a good alternative for some. People who earn money on a bimonthly schedule might find this payment schedule beneficial. Some may discover that paying their loan instantly after getting their paycheck works well for their capital and budgeting efforts. Others might just feel much better paying a smaller quantity twice every month, rather than paying a lump amount all at once.

Related Calculators

Interested in other tools to enhance your finances? We provide a series of calculators to help you understand the monetary impacts of various kinds of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have multiple different loans with numerous different rates? Our mixed rate calculator averages these rates into a single interest rate to assist you much better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your debt service coverage ratio, which is a crucial metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers get approved for special loans with a variety of advantages, like low loan rates, no down payment, and more. Use this calculator to determine 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 receive using bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your rates of interest is a smart choice based upon your finances. Debt Consolidation Calculator: A debt combination loan rolls several debts into a single payment, generally with a lower rate. See what a loan like this might look like based on your current debts. VA Loan Affordability Calculator: Estimate just 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 amount of interest paid with our home loan payoff calculator. Rent vs Buy Calculator: Unsure about whether you should rent or buy? Our lease vs buy calculator can help you compare the short- and long-term expenses involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we offer flexible loaning alternatives and an unequaled customer experience. In addition to conventional home loan choices like standard loans and VA loans, we likewise provide a wide variety of non-QM loans.

Want to discover more about your home mortgage alternatives? Reach out today and we can help you discover a home loan that best aligns with your present finances and long-term objectives.

Find the very best loan for you. Connect today!

Frequently Asked Questions

Is it much better to do month-to-month or biweekly home loan payments?

Finding the right payment schedule depends on your particular needs. Biweekly home 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 mortgage payment each year. It is essential to determine whether there's space in your budget for this expense. You wish to pay your loan off quicker: Depending upon the terms of your loan, making biweekly payments will allow you to settle your loan far more quickly. Use our biweekly home loan calculator with extra payments to see how additional payments effect your loan term. You wish to pay less interest: Because you settle your loan more quickly with biweekly home mortgage payments, your loan will have less time to accrue interest and you'll pay less interest gradually. This can be particularly beneficial to those with a fairly high mortgage rate.

What are the disadvantages of making biweekly mortgage payments?

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

In many cases, biweekly payments may include extra costs. Some mortgage loan providers charge an additional cost for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent concept to research whether switching to biweekly payments with your lending institution has any involved 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 portion of your loan's staying balance. Because biweekly payments lower your staying balance at a sped up 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 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 nationwide shop mortgage lender concentrating on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is seen as an industry leader and specialist in property finance. Lyons has actually 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 essential changes in the market to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.
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