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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 start making biweekly home loan payments.

A regular monthly mortgage payment is standard for many loan providers. On a regular monthly schedule, you make one home loan payment each month, leading to 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 complete home loan payments - one additional payment compared to a month-to-month schedule.

Curious what a biweekly home mortgage payment may mean for your financial resources? Whether you're thinking of switching a current home loan to biweekly payments or exploring a new home mortgage, it's a great idea to get a clear picture of your payment alternatives. 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, enter the following information:

Principal loan balance: If you have not begun paying your home loan yet, this will be the overall loan quantity. If you've been paying your mortgage, enter the loan balance that remains. Rates of interest: Enter the current interest rate of your loan. Make sure to be precise to the decimal point. Loan term: The term of your loan is the number of years until the loan is because of be paid off. If you have a 30-year loan, your loan term is 30 years. Enter that information here.

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

Next, it's time to see your payoff results. The biweekly home loan calculator takes this info and creates 2 different computations:

Monthly home mortgage payments: First, the biweekly home loan calculator informs you the information of what a month-to-month payment might appear like. It determines your regular monthly payment quantity, the total interest you'll pay over the life time of your loan, and the typical interest you'll pay each month. Biweekly home mortgage payments: Next, the biweekly mortgage calculator provides the biweekly payment information. You'll see the biweekly mortgage payment amount, 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 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 using month-to-month payments (the black line) versus biweekly payments (the red location), noted here as the "Accelerated Balance".

You'll see that with biweekly mortgage payments, your loan balance will reduce at a quicker rate and you'll settle your loan in less time. The more quickly you settle your loan, the less balance will remain 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 between a monthly versus biweekly home loan payment schedule might appear minimal, the extra month's mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Settling the loan faster: Because there's an additional loan payment every year, debtors who make biweekly payments pay off their loans much quicker than monthly payment customers. Paying less general interest: Because the loan is paid off faster, less primary loan balance remains to pay interest on. Gradually, this leads to significantly less interest paid. The greater your interest rate, the more of a difference paying biweekly can make in the quantity of interest you pay. Building equity faster: As you settle your mortgage, the quantity you settled becomes your equity in your house. When you settle your mortgage quicker with biweekly payments, you'll build equity faster. This is available in convenient if you choose to offer your home before the loan is settled or if you wish to secure a home equity loan, home equity line of credit, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

Some lending institutions also use the choice to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments every month, usually on the first and 15th. Much like making a monthly home mortgage payment, this leads to 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 reduce the amount of interest paid over the life of the loan. However, they do not have as huge of an impact as biweekly mortgage payments, which assist you settle your loan quicker, pay less interest with time, and develop equity in your home quicker.

That said, bimonthly loan payments might be an excellent choice for some. People who make money on a bimonthly schedule may find this payment schedule favorable. Some may discover that paying their loan right away after getting their income works well for their capital and budgeting efforts. Others may just feel much better paying a smaller quantity twice each month, rather than paying a swelling sum simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have multiple different 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 quickly estimate your debt service protection ratio, which is a key metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers qualify for unique loans with a series of advantages, like low loan rates, no down payment, and more. Use this calculator to identify 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 kind of mortgage you can receive utilizing bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily purchasing down your rate of interest is a wise choice based upon your financial resources. Debt Consolidation Calculator: A financial obligation consolidation loan rolls several financial obligations 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 afford when using a VA loan. Mortgage Payoff Calculator: See how changing your home mortgage payment effects your loan term and the quantity of interest paid with our home mortgage payoff calculator. Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our lease vs purchase calculator can help you compare the brief- and long-lasting expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile lending options and an unmatched consumer experience. In addition to standard home mortgage options like traditional loans and VA loans, we likewise provide a wide variety of non-QM loans.

Want to discover more about your home loan choices? Connect today and we can help you find a mortgage that best lines up with your current finances and long-term objectives.

Find the finest loan for you. Reach out today!

Frequently Asked Questions

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

Finding the right payment schedule depends on your specific needs. Biweekly home loan payments may be a better option if:

You can manage to pay more money each year: On a biweekly payment schedule, you'll be making one additional mortgage payment each year. It is necessary to determine whether there's space in your budget plan for this expense. You want to pay your loan off more quickly: Depending upon the regards to your loan, making biweekly payments will enable you to pay off your loan much more rapidly. Use our biweekly mortgage calculator with extra payments to see how extra payments impact your loan term. You want to pay less interest: Because you settle your loan more quickly with biweekly home loan payments, your loan will have less time to accrue interest and you'll pay less interest over time. This can be especially beneficial to those with a fairly high home loan rate.

What are the downsides of making biweekly home mortgage payments?

The main drawback of biweekly home loan payments is the greater yearly expense. Because you make 26 half-payments throughout a year, or 13 complete mortgage payments, you'll make one additional loan payment every year. Depending on your loan and financials, the extra payment can be a significant problem to handle.

Sometimes, biweekly payments may come with extra costs. Some home mortgage lenders charge an additional fee for biweekly payments or charge a charge for loans that are paid off early. It's a great idea to research whether changing to biweekly payments with your lender has any associated charges so that you can compute the real expense of biweekly payments.

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

Yes. By changing 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 a sped up 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 month-to-month 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 store mortgage loan provider focusing on providing 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 genuine estate financing. Lyons has been included 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 changes in the market to the most worth to Griffin's customers. Under Lyons' management, Griffin Funding has actually made the Inc.
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