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What Is a Biweekly Mortgage Calculator?

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

A monthly home loan payment is standard for a lot of loan providers. On a month-to-month schedule, you make one mortgage payment monthly, leading to 12 home mortgage payments each calendar year. When you pay your home mortgage on a biweekly schedule, nevertheless, you share of a home mortgage payment every two weeks. Throughout a year, this results in 26 half payments or 13 full mortgage payments - one extra payment compared to a month-to-month schedule.

Curious what a biweekly home loan payment may suggest for your finances? Whether you're considering changing a current home mortgage to biweekly payments or exploring a new mortgage, it's a great idea to get a clear photo of your payment choices. Use our biweekly 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 mortgage calculator. First, go into the following information:

Principal loan balance: If you haven't begun paying your home mortgage yet, this will be the overall loan amount. If you've been paying your home mortgage, go into the loan balance that stays. Rates of interest: Enter the present interest rate of your loan. Make sure to be exact down to the decimal point. Loan term: The term of your loan is the variety 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 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 reward outcomes. The biweekly mortgage calculator takes this details and generates 2 different estimations:

Monthly home 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 amount, the overall interest you'll pay over the lifetime of your loan, and the typical interest you'll pay each month. Biweekly home loan payments: Next, the biweekly home mortgage calculator provides the biweekly payment details. You'll see the biweekly home loan payment amount, total interest you'll pay over the life of the loan, and the average interest paid per period. You'll discover that by making biweekly home loan payments, you can reduce the total amount of interest paid over the life of the loan.

Under the calculator results, the biweekly home mortgage calculator shows a chart of your loan balance with time when utilizing monthly payments (the black line) versus biweekly payments (the red location), noted here as the "Accelerated Balance".

You'll see that with biweekly home loan payments, your loan balance will decrease at a faster rate and you'll pay off your loan in less time. The quicker you pay off 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 minimal, the extra month's home mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Settling the loan much faster: Because there's an extra loan payment every year, customers who make biweekly payments pay off their loans much quicker than monthly payment debtors. Paying less overall interest: Because the loan is paid off faster, less primary loan balance stays to pay interest on. Gradually, this results in considerably less interest paid. The higher your interest rate, the more of a difference paying biweekly can make in the quantity of interest you pay. Building equity quicker: As you settle your home loan, the quantity you settled becomes your equity in your home. When you settle your mortgage more rapidly with biweekly payments, you'll construct equity much faster. This is available in helpful if you choose to offer your home before the loan is settled or if you wish to get a home equity loan, home equity line of credit, or cash-out re-finance at some time.

Biweekly vs. Bimonthly Payments

Some loan providers also offer the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan 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 per month.

Making bimonthly home loan payments can help debtors reduce the quantity of interest paid over the life of the loan. However, they do not have as big of an impact as biweekly mortgage payments, which help you settle your loan much faster, pay less interest gradually, and develop equity in your home faster.

That said, bimonthly loan payments might be a good alternative for some. People who earn money on a bimonthly schedule may discover this payment schedule favorable. Some might find that paying their loan instantly after receiving their paycheck works well for their money flow and budgeting efforts. Others may simply feel better paying a smaller sized quantity twice each month, instead of paying a lump sum at one time.

Related Calculators

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

Blended Rate Calculator: Do you have multiple various loans with multiple various rates? Our blended rate calculator averages these rates into a single rates of interest to assist you much better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly approximate your financial obligation service protection ratio, which is a crucial metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers certify 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 might appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent specialist, utilize our bank declaration calculator to see what kind of mortgage you can qualify for using 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 combination loan rolls numerous debts into a single payment, normally with a lower rate. See what a loan like this may appear like based on your current financial obligations. VA Loan Affordability Calculator: Estimate just how much home you can manage when utilizing a VA loan. Mortgage Payoff Calculator: See how changing your home loan payment impacts your loan term and the quantity of interest paid with our mortgage payoff calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our lease vs buy calculator can help you compare the short- and long-lasting costs included with both alternatives.

Explore Flexible Mortgage Options

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

Want to learn more about your home loan options? Reach out today and we can assist you find a mortgage that best lines up with your present finances and long-lasting goals.

Find the best loan for you. Connect today!

Frequently Asked Questions

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

Finding the ideal payment schedule depends upon your particular needs. Biweekly mortgage payments may be a better option if:

You can pay for to pay more money each year: On a biweekly payment schedule, you'll be making one additional mortgage payment each year. It is very important to determine whether there's room in your budget plan for this cost. You want to pay your loan off faster: Depending on the regards to your loan, making biweekly payments will enable you to pay off your loan much more quickly. Use our biweekly mortgage calculator with extra payments to see how additional payments effect your loan term. You want 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 with time. This can be especially helpful to those with a reasonably high mortgage rate.

What are the downsides of making biweekly mortgage payments?

The primary drawback of biweekly home mortgage payments is the higher annual cost. Because you make 26 half-payments throughout a year, or 13 full home loan payments, you'll make one extra loan payment each year. Depending on your loan and financials, the extra payment can be a considerable concern to take on.

Sometimes, biweekly payments may feature extra costs. Some mortgage loan providers charge an additional cost for biweekly payments or charge a charge for loans that are settled early. It's a great concept to research whether changing to biweekly payments with your lender has any associated charges so that you can calculate the true expense of biweekly payments.

Does making biweekly payments decrease the amount 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 accrues as a portion of your loan's staying balance. Because biweekly payments lower your remaining 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 overall 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 national shop mortgage loan provider concentrating on providing 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 expert in property 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 crucial modifications in the industry to provide the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.
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