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 start making biweekly mortgage payments.

A monthly home mortgage payment is standard for a lot of lending institutions. On a monthly schedule, you make one home mortgage payment each month, leading to 12 home mortgage payments each fiscal year. When you pay your home mortgage on a biweekly schedule, nevertheless, you share of a home mortgage payment every 2 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 regular monthly schedule.

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

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly home loan calculator. First, go into the following information:

Principal loan balance: If you have not begun paying your mortgage yet, this will be the total loan quantity. If you have actually been paying your mortgage, get in the loan balance that stays. Rates of interest: Enter the current rate of interest of your loan. Make sure to be exact 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 30 years. Enter that details here.

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

Next, it's time to see your reward outcomes. The biweekly mortgage calculator takes this info and produces two different computations:

Monthly home mortgage payments: First, the biweekly home mortgage calculator informs you the information of what a monthly payment may look like. It calculates your month-to-month payment quantity, the overall interest you'll pay over the lifetime of your loan, and the average interest you'll pay monthly. Biweekly mortgage payments: Next, the biweekly home loan calculator provides the biweekly payment info. You'll see the biweekly home mortgage payment quantity, total interest you'll pay over the life of the loan, and the typical interest paid per period. You'll see that by making biweekly home mortgage payments, you can lower the overall 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 in time when making use of regular monthly payments (the black line) versus biweekly payments (the red location), listed 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 quicker you settle 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 monthly versus biweekly home loan payment schedule might appear minimal, the additional month's mortgage payment each year makes a big distinction in the long run. Benefits of biweekly payments consist of:

Settling the loan faster: Because there's an extra loan payment every year, borrowers 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 much faster, less principal loan balance remains to pay interest on. With time, this results in significantly less interest paid. The greater your interest rate, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity quicker: As you settle your mortgage, the quantity you settled becomes your equity in your home. When you pay off your home mortgage quicker with biweekly payments, you'll construct equity much faster. This can be found in convenient if you choose to offer your home before the loan is settled or if you wish to take out a home equity loan, home equity line of credit, or cash-out refinance at some point.

Biweekly vs. Bimonthly Payments

Some loan providers also provide the alternative to pay a loan bimonthly. Borrowers who do so will share of their loan payments each month, generally on the first and 15th. Just like making a month-to-month home mortgage payment, this leads to 12 payments each year. The only difference is that payments are made in half, twice per month.

Making bimonthly home loan payments can assist debtors minimize the amount of interest paid over the life of the loan. However, they don't have as huge of an effect as biweekly home loan payments, which help you pay off your loan much faster, pay less interest with time, and build equity in your home faster.

That stated, bimonthly loan payments might be a good alternative for some. People who earn money on a bimonthly schedule might discover this payment schedule favorable. Some might find that paying their loan instantly after receiving their income works well for their money circulation and budgeting efforts. Others might simply feel much better paying a smaller amount two times every month, instead of paying a swelling sum at one time.

Related Calculators

Interested in other tools to improve your finances? We use a series of calculators to assist you comprehend the financial impacts of different kinds of loan payments, rates of interest, 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 better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your financial obligation service protection ratio, which is an essential metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers receive special loans with a variety of advantages, like low loan rates, no deposit, and more. Use this calculator to identify what a VA home mortgage may look 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 receive using bank declarations. 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 on your financial resources. Debt Consolidation Calculator: A debt consolidation loan rolls numerous debts into a single payment, usually with a lower rate. See what a loan like this may appear like based upon your current debts. VA Loan Affordability Calculator: Estimate how much home you can pay for when utilizing a VA loan. Mortgage Payoff Calculator: See how altering your home loan payment impacts your loan term and the amount of interest paid with our home loan payoff calculator. Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our lease vs buy calculator can assist you compare the short- and long-lasting costs involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we offer versatile loaning alternatives and an unmatched customer experience. In addition to traditional home loan choices like conventional loans and VA loans, we likewise provide a large range of non-QM loans.

Want to discover more about your home loan options? Connect today and we can help you discover a mortgage that best lines up with your present finances and long-lasting goals.

Find the very best loan for you. Connect today!

Frequently Asked Questions

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

Finding the ideal payment schedule depends upon your particular requirements. Biweekly mortgage payments might 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 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 faster: Depending on the terms of your loan, making biweekly payments will allow you to pay off your loan a lot more rapidly. Use our biweekly home mortgage calculator with additional payments to see how additional payments effect your loan term. You want to pay less interest: Because you pay off your loan faster with biweekly mortgage payments, your loan will have less time to accrue interest and you'll pay less interest over time. This can be particularly beneficial to those with a reasonably high home loan rate.

What are the drawbacks of making biweekly mortgage payments?

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

In many cases, biweekly payments might come with extra expenses. Some mortgage lenders charge an additional cost for biweekly payments or charge a penalty for loans that are settled early. It's a good concept to research whether changing to biweekly payments with your lender has any involved fees so that you can determine 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 accrues as a portion of your loan's staying balance. Because biweekly payments lower your remaining balance at an accelerated speed, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the distinction in total 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 store mortgage lending institution focusing on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is viewed 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 is able to keep up with crucial modifications in the market to deliver the most value to Griffin's customers. Under Lyons' management, Griffin Funding has made the Inc.
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