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 home loan payments.

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

Curious what a biweekly home mortgage payment may imply for your finances? Whether you're thinking about changing an existing home loan to biweekly payments or exploring a new home mortgage, it's an excellent idea to get a clear photo of your payment options. Use our biweekly home mortgage calculator to compute the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you haven't started paying your home mortgage yet, this will be the total loan amount. If you've been paying your home mortgage, go into the loan balance that stays. Rate of interest: Enter the present interest rate of your loan. Make certain 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 thirty years. Enter that info 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 results. The biweekly home mortgage calculator takes this info and produces 2 different calculations:

Monthly mortgage payments: First, the biweekly mortgage calculator tells you the details of what a month-to-month payment might appear like. It determines your month-to-month payment amount, the total interest you'll pay over the life time of your loan, and the typical interest you'll pay every month. Biweekly home loan payments: Next, the biweekly home mortgage calculator provides 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 observe that by making biweekly home loan payments, you can lower the overall quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly 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 area), listed here as the "Accelerated Balance".

You'll see that with biweekly home mortgage payments, your loan balance will decrease at a much faster rate and you'll settle your loan in less time. The quicker you settle your loan, the less balance will stay that you require to pay interest on. That implies you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the distinction in between a regular monthly versus biweekly home loan payment schedule might seem very little, the additional month's home loan 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 additional loan payment every year, customers who make biweekly payments settle their loans much quicker than month-to-month payment customers. Paying less overall interest: Because the loan is paid off faster, less primary loan balance remains to pay interest on. With time, this results in substantially 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 faster: As you pay off your mortgage, the amount you paid off becomes your equity in your house. When you settle your home loan quicker with biweekly payments, you'll construct equity quicker. This comes in convenient if you decide to sell your home before the loan is paid off or if you want to secure a home equity loan, home equity line of credit, or cash-out re-finance at some point.

Biweekly vs. Bimonthly Payments

Some lenders likewise provide the choice to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, typically on the 1st and 15th. Similar to making a regular monthly home mortgage payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times monthly.

Making bimonthly home loan payments can help customers minimize 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 help you settle your loan quicker, pay less interest in time, and build equity in your house much faster.

That stated, bimonthly loan payments may be an excellent alternative for some. People who get paid on a bimonthly schedule might find this payment schedule favorable. Some may find that paying their loan instantly after receiving their income works well for their capital and budgeting efforts. Others might merely feel much better paying a smaller amount twice every month, rather than paying a lump sum all at as soon as.

Related Calculators

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

Blended Rate Calculator: Do you have numerous different loans with multiple different rates? Our combined rate calculator averages these rates into a single rate of interest to help you better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your debt service protection ratio, which is an essential metric in identifying 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 determine what a VA mortgage might look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent professional, use our bank statement calculator to see what sort of home loan you can get approved for utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your interest rate is a wise decision based on your financial resources. Debt Consolidation Calculator: A financial obligation combination loan rolls multiple debts into a single payment, typically with a lower rate. See what a loan like this may appear like based upon your existing debts. VA Loan Affordability Calculator: Estimate how much home you can manage when using a VA loan. Mortgage Payoff Calculator: See how altering your home loan payment impacts your loan term and the amount of interest paid with our home mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our lease vs purchase calculator can help you compare the short- and long-lasting expenses included with both choices.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile financing alternatives and an unequaled client experience. In addition to traditional mortgage 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? Connect today and we can help you find a home mortgage that best aligns with your present financial resources and long-term goals.

Find the finest 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 specific requirements. Biweekly home mortgage payments might be a better option if:

You can afford to pay more money each year: On a biweekly payment schedule, you'll be making one additional home mortgage payment each year. It is essential to figure out whether there's space in your budget for this expense. You wish to pay your loan off more quickly: Depending on the terms of your loan, making biweekly payments will enable you to settle your loan far more rapidly. Use our biweekly home loan calculator with extra payments to see how extra payments effect your loan term. You wish to pay less interest: Because you settle your loan quicker with biweekly mortgage payments, your loan will have less time to accrue interest and you'll pay less interest with time. This can be specifically advantageous to those with a reasonably high home loan rate.

What are the downsides of making biweekly home mortgage payments?

The primary 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 full mortgage payments, you'll make one additional loan payment yearly. Depending upon your loan and financials, the extra payment can be a considerable concern to handle.

In many cases, biweekly payments may include 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 idea to research whether switching to biweekly payments with your lender has any associated costs so that you can compute the true cost of biweekly payments.

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

Yes. By switching to a biweekly payment schedule, you'll pay much less interest over the term of your loan. Interest accumulates as a percentage 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 overall interest paid on a mortgage that's paid regular monthly vs a mortgage that's paid biweekly.
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Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national shop mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage company. Lyons is seen as a market leader and professional in real estate 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 keep up with important modifications in the market to deliver the most value to Griffin's clients. Under Lyons' management, Griffin Funding has actually made the Inc.
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