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 start making biweekly home mortgage payments.

A month-to-month mortgage payment is standard for most lenders. On a month-to-month schedule, you make one home loan payment monthly, leading to 12 home mortgage payments each fiscal year. When you pay your home mortgage on a biweekly schedule, nevertheless, you pay half of a mortgage payment every 2 weeks. Over the course of a year, this results in 26 half payments or 13 full home loan payments - one additional payment compared to a month-to-month schedule.

Curious what a biweekly mortgage payment may indicate for your finances? Whether you're considering switching a current mortgage to biweekly payments or checking out a new mortgage, it's a great idea to get a clear image of your payment choices. Use our biweekly home mortgage calculator to calculate the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly mortgage calculator. First, enter the following info:

Principal loan balance: If you haven't begun paying your home loan yet, this will be the total loan amount. If you've been paying your home loan, enter the loan balance that remains. Rates of interest: Enter the existing rate of interest of your loan. Make certain to be precise down to the decimal point. Loan term: The regard to your loan is the number 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 information has actually been gotten in, all that's delegated do is press "Calculate".

Next, it's time to see your benefit outcomes. The biweekly home loan calculator takes this information and creates two different calculations:

Monthly home loan payments: First, the biweekly home loan calculator tells you the information of what a regular monthly payment might look like. It calculates your monthly payment amount, the overall interest you'll pay over the life time of your loan, and the average interest you'll pay each month. Biweekly home loan payments: Next, the biweekly mortgage calculator provides the biweekly payment info. You'll see the biweekly home loan payment quantity, total interest you'll pay over the life of the loan, and the average interest paid per period. You'll see that by making biweekly mortgage payments, you can reduce the overall quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator shows a chart of your loan balance over time when utilizing month-to-month 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 quicker rate and you'll settle your loan in less time. The faster you settle your loan, the less balance will remain that you need to pay interest on. That indicates you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the distinction in between a monthly versus biweekly home loan payment schedule may seem very little, the extra month's home mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments consist of:

Settling the loan 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 general interest: Because the loan is paid off faster, less primary loan balance remains to pay interest on. Over time, this results in significantly less interest paid. The greater your rates of interest, the more of a distinction paying biweekly can make in the amount of interest you pay. Building equity faster: As you pay off your mortgage, the amount you settled becomes your equity in your house. When you settle your mortgage faster with biweekly payments, you'll build equity much faster. This comes in useful if you decide to sell 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 point.

Biweekly vs. Bimonthly Payments

Some lenders also use the option to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, typically on the first and 15th. Just like making a monthly home loan payment, this leads to 12 payments each year. The only difference is that payments are made in half, two times each month.

Making bimonthly mortgage payments can assist debtors decrease the amount 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 assist you pay off your loan much faster, pay less interest over time, and develop equity in your home faster.

That said, bimonthly loan payments might be a great choice for some. People who get paid on a bimonthly schedule might find this payment schedule favorable. Some might discover that paying their loan immediately after receiving their income works well for their money flow and budgeting efforts. Others may merely feel much better paying a smaller quantity twice each month, rather than paying a lump amount at one time.

Related Calculators

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

Blended Rate Calculator: Do you have numerous various loans with numerous different rates? Our combined rate calculator averages these rates into a single rates of interest to assist you better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your debt service coverage ratio, which is an essential metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers receive unique loans with a range of advantages, like low loan rates, no down payment, and more. Use this calculator to identify what a VA home mortgage may appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, use our bank declaration 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 momentarily purchasing down your rate of interest is a sensible choice based on your financial resources. Debt Consolidation Calculator: A financial obligation consolidation loan rolls several debts into a single payment, typically with a lower rate. See what a loan like this might appear like based on your present 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 mortgage payment impacts your loan term and the amount of interest paid with our home loan reward calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our rent vs purchase calculator can assist you compare the brief- and long-lasting expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible loaning choices and an unmatched customer experience. In addition to standard mortgage alternatives like conventional loans and VA loans, we likewise use a large range of non-QM loans.

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

Find the very best loan for you. Connect today!

Frequently Asked Questions

Is it better to do regular monthly or biweekly home loan payments?
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Finding the right payment schedule depends on your specific needs. Biweekly home loan payments may be a better option if:

You can pay for to pay more cash each year: On a biweekly payment schedule, you'll be making one additional home loan payment each year. It's essential to determine whether there's room in your budget for this cost. You wish to pay your loan off quicker: Depending on the terms of your loan, making biweekly payments will allow you to settle your loan a lot more quickly. Use our biweekly home loan calculator with additional payments to see how extra payments impact your loan term. You want to pay less interest: Because you pay off your loan more rapidly 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 particularly beneficial to those with a fairly high .

What are the disadvantages of making biweekly mortgage payments?

The main disadvantage of biweekly home 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 annually. Depending upon your loan and financials, the extra payment can be a considerable problem to take on.

In some cases, biweekly payments may include additional expenses. Some mortgage loan providers charge an extra cost for biweekly payments or charge a charge for loans that are paid off early. It's a great concept to research whether changing to biweekly payments with your lender has any involved fees so that you can compute the real cost of biweekly payments.

Does making biweekly payments minimize the quantity of interest I pay?
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Yes. By switching to a biweekly payment schedule, you'll pay much less interest over the regard to your loan. Interest accrues as a percentage of your loan's staying balance. Because biweekly payments lower your staying balance at an accelerated speed, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the difference in overall 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 nationwide store mortgage loan provider concentrating on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is seen as a market leader and professional in property financing. Lyons has actually 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 crucial modifications in the market to provide the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has made the Inc.
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