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

Curious what a biweekly home loan payment may mean for your financial resources? Whether you're thinking of switching a current home mortgage to biweekly payments or exploring a new home mortgage, it's a great concept to get a clear photo of your payment options. Use our biweekly mortgage calculator to compute 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, enter the following details:

Principal loan balance: If you haven't started paying your home loan yet, this will be the total loan quantity. If you have actually been paying your home loan, get in the loan balance that remains. Rates of interest: Enter the present rates of interest of your loan. Make sure to be precise down 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 30 years. Enter that details here.

Once this information has actually been gotten in, all that's left to do is press "Calculate".

Next, it's time to see your benefit results. The biweekly home loan calculator takes this information and produces 2 different estimations:

Monthly mortgage payments: First, the biweekly home mortgage calculator informs you the details of what a regular monthly payment may look like. It calculates your regular monthly payment amount, the total interest you'll pay over the lifetime of your loan, and the average interest you'll pay every month. Biweekly home mortgage payments: Next, the biweekly home loan calculator offers the biweekly payment info. You'll see the biweekly home mortgage payment amount, total interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll notice that by making biweekly home loan payments, you can decrease the total quantity 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 in time when making use of 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 mortgage payments, your loan balance will decrease at a much faster rate and you'll settle your loan in less time. The faster you pay off your loan, the less balance will stay 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 in between a regular monthly versus biweekly home mortgage payment schedule might appear very little, the additional month's home loan payment each year makes a big difference in the long run. Benefits of biweekly payments include:

Settling the loan quicker: Because there's an additional loan payment every year, debtors who make biweekly payments pay off their loans much quicker than regular monthly payment customers. Paying less overall interest: Because the loan is paid off faster, less primary loan balance stays to pay interest on. With time, this results in significantly less interest paid. The higher your rate of interest, the more of a distinction paying biweekly can make in the amount of interest you pay. Building equity quicker: As you pay off your home loan, the quantity you paid off becomes your equity in your home. When you settle your home mortgage more rapidly with biweekly payments, you'll build equity quicker. This can be found in helpful if you choose to sell 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 refinance at some point.

Biweekly vs. Bimonthly Payments

Some lenders likewise provide the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments each month, usually on the 1st and 15th. Much like making a month-to-month mortgage payment, this leads to 12 payments each year. The only distinction is that payments are made in half, two times per month.

Making bimonthly mortgage payments can help debtors decrease the amount of interest paid over the life of the loan. However, they do not have as huge of an effect as biweekly mortgage payments, which help you pay off your loan quicker, pay less interest in time, and construct equity in your home faster.

That said, bimonthly loan payments may be an excellent alternative for some. People who get paid on a bimonthly schedule might discover 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 may merely feel better paying a smaller quantity twice every month, instead of paying a swelling sum all at when.

Related Calculators

Interested in other tools to improve your financial resources? We provide a variety of calculators to help you understand the financial effects of different kinds of loan payments, interest rates, 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 rates of interest to assist you much better understand just how much you're paying in interest. DSCR Calculator: Use this tool to quickly approximate your financial obligation service coverage ratio, which is an essential metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers get approved 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 mortgage might look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, use our bank statement calculator to see what sort of home mortgage you can qualify for using bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your rate of interest is a smart choice based upon your financial resources. Debt Consolidation Calculator: A debt combination loan rolls multiple financial obligations into a single payment, normally with a lower rate. See what a loan like this might appear like based upon your existing financial obligations. VA Loan Affordability Calculator: Estimate how much home you can manage when using a VA loan. Mortgage Payoff Calculator: See how changing your mortgage payment effects your loan term and the quantity of interest paid with our mortgage benefit calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our lease 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 versatile financing choices and an unrivaled client experience. In addition to traditional home loan choices like conventional loans and VA loans, we also offer a wide variety of non-QM loans.

Wish to find out more about your home loan alternatives? Connect today and we can help you discover a mortgage that finest aligns with your existing finances and long-lasting objectives.

Find the best loan for you. Connect today!

Frequently Asked Questions

Is it better to do monthly or biweekly home loan payments?

Finding the best payment schedule depends upon your specific requirements. Biweekly mortgage payments might be a better option if:

You can manage to pay more money each year: On a biweekly payment schedule, you'll be making one extra home mortgage payment each year. It is necessary to identify whether there's room in your spending plan for this expense. You desire to pay your loan off more quickly: Depending upon the terms of your loan, making biweekly payments will allow you to settle your loan a lot more rapidly. Use our biweekly mortgage calculator with additional payments to see how extra payments impact your loan term. You want to pay less interest: Because you settle your loan faster with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest in time. This can be especially advantageous to those with a fairly high home loan rate.

What are the drawbacks of making biweekly home mortgage payments?

The main downside of biweekly home loan payments is the higher yearly cost. Because you make 26 half-payments throughout a year, or 13 full home mortgage payments, you'll make one additional loan payment every year. Depending upon your loan and financials, the additional payment can be a significant burden to handle.

In many cases, biweekly payments might feature additional costs. Some home mortgage loan providers charge an extra fee for biweekly payments or charge a charge for loans that are paid off early. It's an excellent concept to research study whether changing to biweekly payments with your lending institution has any involved charges so that you can calculate the real expense of biweekly payments.

Does making biweekly payments reduce 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 portion of your loan's staying balance. Because biweekly payments lower your remaining balance at a sped up rate, 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 store mortgage loan provider concentrating on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is seen as an industry leader and specialist in property financing. Lyons has actually been included in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons has the ability to stay up to date with important changes in the industry to the most worth to Griffin's customers. Under Lyons' management, Griffin Funding has actually made the Inc.
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