What Is a Biweekly Mortgage Calculator?

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

A regular monthly home mortgage payment is basic for the majority of lenders. On a regular monthly schedule, you make one home loan payment each month, 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 home loan payment every two weeks. Over the course of a year, this leads to 26 half payments or 13 complete home mortgage payments - one extra payment compared to a month-to-month schedule.

Curious what a biweekly home loan payment may mean for your finances? Whether you’re thinking of switching an existing home mortgage to biweekly payments or exploring a new home loan, it’s a great concept to get a clear photo of your payment alternatives. Use our biweekly home mortgage calculator to calculate the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It’s simple to use the biweekly home mortgage calculator. First, go into the following details:

Principal loan balance: If you haven’t started paying your home mortgage yet, this will be the total loan quantity. If you have actually been paying your home loan, go into the loan balance that remains. Rate of interest: Enter the existing interest rate of your loan. Ensure to be specific down to the decimal point. Loan term: The term of your loan is the variety of years until the loan is due to be settled. If you have a 30-year loan, your loan term is 30 years. Enter that info here.

Once this info has been gotten in, all that’s delegated do is press “Calculate”.

Next, it’s time to see your payoff outcomes. The biweekly home mortgage calculator takes this info and generates two different estimations:

Monthly home loan payments: First, the biweekly mortgage calculator tells you the details of what a monthly payment may look like. It computes your monthly payment quantity, the overall interest you’ll pay over the lifetime of your loan, and the typical interest you’ll pay monthly. Biweekly home loan payments: Next, the biweekly mortgage calculator offers 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 see that by making biweekly mortgage payments, you can reduce the overall of interest paid over the life of the loan.

Under the calculator results, the biweekly home loan calculator shows 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 reduce at a faster rate and you’ll settle your loan in less time. The quicker 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 difference between a regular monthly versus biweekly home mortgage payment schedule may appear minimal, the additional month’s mortgage payment each year makes a big difference in the long run. Benefits of biweekly payments consist of:

Settling the loan faster: Because there’s an extra loan payment every year, customers who make biweekly payments settle their loans much faster than monthly payment customers. Paying less general interest: Because the loan is paid off quicker, less primary loan balance stays to pay interest on. Over time, this leads to considerably less interest paid. The greater your rate of interest, the more of a distinction paying biweekly can make in the amount of interest you pay. Building equity much faster: As you settle your home mortgage, the amount you settled becomes your equity in your house. When you pay off your home loan quicker with biweekly payments, you’ll construct equity quicker. This comes in useful if you decide 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 at some time.

Biweekly vs. Bimonthly Payments

Some loan providers also use the choice to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, generally on the first and 15th. Just like making a month-to-month home loan payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times per month.

Making bimonthly home mortgage payments can assist customers lower the quantity of interest paid over the life of the loan. However, they do not have as huge of an impact as biweekly home mortgage payments, which assist you settle your loan faster, pay less interest over time, and construct equity in your home faster.

That said, bimonthly loan payments may be an excellent alternative for some. People who earn money on a bimonthly schedule may discover this payment schedule favorable. Some may discover that paying their loan immediately after receiving their paycheck works well for their money flow and budgeting efforts. Others might just feel better paying a smaller quantity twice every month, rather than paying a swelling amount all at when.

Related Calculators

Interested in other tools to enhance your finances? We provide a variety 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 multiple various loans with numerous different rates? Our blended rate calculator averages these rates into a single rate of interest to assist you much better understand just how much you’re paying in interest. DSCR Calculator: Use this tool to quickly estimate your debt service coverage 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 series of benefits, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home loan may appear like for you. Bank Statement Loan Calculator: If you’re self-employed or an independent contractor, use our bank statement calculator to see what type of home mortgage you can certify for utilizing bank statements. 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 finances. Debt Consolidation Calculator: A financial obligation consolidation loan rolls several debts into a single payment, usually with a lower rate. See what a loan like this may look like based upon your existing financial obligations. VA Loan Affordability Calculator: Estimate just how much home you can pay for when using a VA loan. Mortgage Payoff Calculator: See how changing your home loan payment effects your loan term and the amount of interest paid with our home mortgage benefit calculator. Rent vs Buy Calculator: Unsure about whether you should rent or buy? Our rent 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 provide versatile loaning choices and an unmatched consumer experience. In addition to conventional home mortgage choices like conventional loans and VA loans, we likewise use a vast array of non-QM loans.

Wish to find out more about your home loan alternatives? Reach out today and we can assist you find a home loan that finest lines up with your present finances and long-term objectives.
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Frequently Asked Questions

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

Finding the right payment schedule depends upon your specific needs. Biweekly home mortgage payments may be a much better choice if:

You can afford to pay more money each year: On a biweekly payment schedule, you’ll be making one additional home loan payment each year. It is very important to determine whether there’s space in your budget for this expense. You desire to pay your loan off faster: Depending upon the regards to your loan, making biweekly payments will enable you to settle your loan a lot more quickly. Use our biweekly home mortgage calculator with extra payments to see how additional payments impact your loan term. You desire to pay less interest: Because you settle your loan more quickly with biweekly mortgage payments, your loan will have less time to accrue interest and you’ll pay less interest in time. This can be specifically useful to those with a reasonably high home loan rate.

What are the disadvantages of making biweekly home loan payments?

The primary disadvantage of biweekly home mortgage payments is the higher annual cost. Because you make 26 half-payments throughout a year, or 13 full mortgage payments, you’ll make one extra loan payment each year. Depending upon your loan and financials, the extra payment can be a significant problem to handle.

In some cases, biweekly payments might include extra expenses. Some home loan loan providers charge an additional fee for biweekly payments or charge a charge for loans that are settled early. It’s an excellent idea to research whether switching to biweekly payments with your loan provider has any involved charges so that you can compute the true expense of biweekly payments.

Does making biweekly payments minimize the amount 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 accumulates as a percentage of your loan’s remaining balance. Because biweekly payments lower your remaining balance at a sped up 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 month-to-month 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 boutique mortgage lender concentrating on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is viewed as an industry leader and specialist in realty 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 crucial modifications in the market to provide the most worth to Griffin’s clients. Under Lyons’ leadership, Griffin Funding has actually made the Inc.
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