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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 might be time to begin making biweekly home loan payments.

A regular monthly home loan payment is standard for a lot of lending institutions. On a monthly schedule, you make one home mortgage payment each month, resulting in 12 home mortgage payments each fiscal year. When you pay your home mortgage on a biweekly schedule, nevertheless, you share of a mortgage payment every 2 weeks. Over the course of a year, this results in 26 half payments or 13 complete mortgage payments - one extra payment compared to a monthly schedule.

Curious what a biweekly mortgage payment may imply for your financial resources? Whether you're thinking of switching an existing mortgage to biweekly payments or exploring a brand-new mortgage, it's a good idea to get a clear image of your payment choices. Use our biweekly home loan calculator to determine the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you have not begun paying your mortgage yet, this will be the overall loan quantity. If you've been paying your home mortgage, enter the loan balance that remains. Rate of interest: Enter the existing interest rate of your loan. Ensure to be precise to the decimal point. Loan term: The regard to your loan is the number of years till the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that details here.

Once this details has actually been entered, all that's delegated do is press "Calculate".

Next, it's time to see your benefit results. The biweekly home mortgage calculator takes this info and generates two different computations:

Monthly home mortgage payments: First, the biweekly home loan calculator informs you the details of what a month-to-month payment may look like. It calculates your monthly payment quantity, the overall interest you'll pay over the lifetime of your loan, and the typical interest you'll pay every month. Biweekly home mortgage payments: Next, the biweekly home mortgage calculator offers the biweekly payment information. You'll see the biweekly home loan payment quantity, overall interest you'll pay over the life of the loan, and the average interest paid per duration. You'll observe that by making biweekly mortgage payments, you can lower the total quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator displays a graph of your loan balance gradually when making use of regular monthly payments (the black line) versus biweekly payments (the red area), listed here as the "Accelerated Balance".

You'll see that with biweekly home loan payments, your loan balance will decrease at a much faster rate and you'll settle your loan in less time. The more rapidly you settle your loan, the less balance will stay that you require to pay interest on. That means 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 loan payment schedule may seem very little, the additional month's home mortgage payment each year makes a huge difference in the long run. Benefits of biweekly payments include:

Paying off the loan quicker: Because there's an extra loan payment every year, debtors who make biweekly payments pay off their loans much quicker than regular monthly payment customers. Paying less total interest: Because the loan is paid off quicker, less primary loan balance remains to pay interest on. Gradually, this results in considerably less interest paid. The higher your rate of interest, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity much faster: As you settle your home loan, the amount you settled becomes your equity in your house. When you settle your home loan more rapidly with biweekly payments, you'll develop equity faster. This comes in helpful if you decide to sell your home before the loan is settled or if you desire to get a home equity loan, home equity credit line, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some lenders also provide the alternative to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, generally on the first and 15th. Just like making a regular monthly home loan payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times monthly.

Making bimonthly mortgage payments can assist debtors decrease the quantity of interest paid over the life of the loan. However, they don't have as huge of an impact as biweekly mortgage payments, which assist you settle your loan faster, pay less interest gradually, and build equity in your house quicker.

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 find that paying their loan immediately after receiving their paycheck works well for their capital and budgeting efforts. Others may just feel much better paying a smaller sized quantity two times each month, rather than paying a lump amount at one time.

Related Calculators

Interested in other tools to improve your financial resources? We provide a series of calculators to assist you understand the monetary impacts of various kinds of loan payments, interest rates, and more:

Blended Rate Calculator: Do you have several different loans with multiple various rates? Our mixed rate calculator averages these rates into a single interest rate to assist you much better comprehend how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your financial obligation service protection ratio, which is a crucial metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers receive special loans with a variety of advantages, like low loan rates, no deposit, and more. Use this calculator to determine what a VA mortgage may appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank declaration calculator to see what sort of home loan you can certify for using bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your interest rate is a smart choice based on your finances. Debt Consolidation Calculator: A debt combination loan rolls several debts into a single payment, usually with a lower rate. See what a loan like this might look like based on your current financial obligations. VA Loan Affordability Calculator: Estimate how much home you can manage when utilizing a VA loan. Mortgage Payoff Calculator: See how altering your mortgage payment effects your loan term and the amount of interest paid with our mortgage benefit calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs purchase calculator can assist you compare the short- and long-lasting expenses included with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible lending options and an unequaled client experience. In addition to standard home loan choices like standard loans and VA loans, we likewise offer a vast array of non-QM loans.

Wish to find out more about your mortgage options? Connect today and we can help you find a home mortgage that finest lines up with your existing finances and long-term goals.

Find the best loan for you. Reach out today!

Asked Questions

Is it better to do monthly or biweekly mortgage payments?

Finding the ideal payment schedule depends on your particular needs. Biweekly home loan payments might be a better choice 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's important to figure out whether there's space in your budget for this expense. You wish to pay your loan off quicker: Depending on the regards to your loan, making biweekly payments will enable you to settle your loan a lot more rapidly. 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 faster 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 fairly high home mortgage rate.

What are the disadvantages of making biweekly home mortgage payments?

The main disadvantage of biweekly mortgage payments is the greater annual cost. Because you make 26 half-payments over the course of a year, or 13 complete home loan payments, you'll make one extra loan payment yearly. Depending upon your loan and financials, the extra payment can be a significant problem to handle.

In some cases, biweekly payments might come with additional costs. Some home loan lenders charge an extra charge for biweekly payments or charge a charge for loans that are settled early. It's a good idea to research study whether changing to biweekly payments with your lender has any associated costs so that you can determine the true cost 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 regard to your loan. Interest accumulates as a portion of your loan's remaining balance. Because biweekly payments lower your remaining balance at an accelerated rate, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the difference in total 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 boutique mortgage lending institution focusing on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is viewed as a market leader and specialist in property finance. 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 changes in the market to deliver the most value to Griffin's customers. Under Lyons' leadership, Griffin Funding has made the Inc.
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