What Is a Biweekly Mortgage Calculator?

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

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

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

How Does the Biweekly Mortgage Calculator Work?

It's easy to use the biweekly home mortgage calculator. First, enter the following info:

Principal loan balance: If you have not started paying your home mortgage yet, this will be the total loan amount. If you've been paying your home mortgage, enter the loan balance that remains. Rate of interest: Enter the current rates of interest of your loan. Make sure to be specific down to the decimal point. Loan term: The term of your loan is the variety of years till the loan is due to be settled. 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 delegated do is press "Calculate".

Next, it's time to see your payoff results. The biweekly home mortgage calculator takes this information and creates two different estimations:

Monthly mortgage payments: First, the biweekly home mortgage calculator informs you the details of what a monthly payment might look like. It calculates your regular monthly payment quantity, the overall interest you'll pay over the life time of your loan, and the average interest you'll pay every month. Biweekly mortgage payments: Next, the biweekly mortgage calculator provides 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 notice that by making biweekly home mortgage payments, you can reduce the overall amount of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator shows a chart of your loan balance gradually when utilizing 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 pay off your loan in less time. The quicker you settle your loan, the less balance will stay 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 difference in between a month-to-month versus biweekly home mortgage payment schedule might seem minimal, the additional month's home mortgage payment each year makes a big distinction in the long run. Benefits of biweekly payments include:

Settling the loan much faster: Because there's an additional loan payment every year, borrowers who make biweekly payments settle their loans much faster than month-to-month payment customers. Paying less general interest: Because the loan is settled much faster, less principal loan balance remains 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 quantity of interest you pay. Building equity faster: As you settle your home loan, the quantity you settled becomes your equity in your house. When you settle your home mortgage faster with biweekly payments, you'll build equity much faster. This is available in useful if you decide to sell your home before the loan is settled or if you want to take out a home equity loan, home equity credit line, or cash-out refinance at some point.

Biweekly vs. Bimonthly Payments

Some loan providers also use the option to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, usually on the 1st and 15th. Similar to making a month-to-month mortgage 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 borrowers reduce the quantity 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 faster, pay less interest in time, and develop equity in your house much faster.

That stated, bimonthly loan payments may be a good option for some. People who earn money on a bimonthly schedule may discover this payment schedule favorable. Some might find that paying their loan instantly after getting their paycheck works well for their money circulation and budgeting efforts. Others might just feel better paying a smaller sized quantity two times each month, rather than paying a swelling amount all at as soon as.

Related Calculators

Interested in other tools to enhance your financial resources? We use a series of calculators to help you comprehend the monetary impacts of different types of loan payments, interest rates, and more:

Blended Rate Calculator: Do you have several various loans with numerous different rates? Our mixed rate calculator averages these rates into a single rates of interest to help you better understand just how much you're paying in interest. DSCR Calculator: Use this tool to quickly 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 get approved for special loans with a variety of benefits, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home loan might look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent specialist, use our bank declaration calculator to see what sort of mortgage you can certify for utilizing bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily buying down your rates of interest is a smart decision based on your finances. Debt Consolidation Calculator: A financial obligation combination loan rolls multiple financial obligations into a single payment, generally with a lower rate. See what a loan like this may appear like based upon your existing debts. VA Loan Affordability Calculator: Estimate how much home you can manage when utilizing a VA loan. Mortgage Payoff Calculator: See how altering your home loan 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 rent or buy? Our lease vs buy calculator can assist you compare the short- and long-term expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible financing choices and an unrivaled customer experience. In addition to standard mortgage alternatives like traditional loans and VA loans, we also provide a wide variety of non-QM loans.

Wish to find out more about your home loan options? Reach out today and we can help you discover a home mortgage that best aligns with your present financial resources and long-lasting goals.

Find the best loan for you. Connect today!
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Frequently Asked Questions

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

Finding the best payment schedule depends on your particular needs. Biweekly home 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 figure out whether there's space in your spending plan for this cost. You wish to pay your loan off quicker: Depending upon the terms of your loan, making biweekly payments will enable you to pay off your loan a lot more rapidly. Use our biweekly home loan calculator with additional payments to see how additional payments impact your loan term. You want to pay less interest: Because you pay off your loan quicker 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 helpful to those with a relatively high home loan rate.

What are the drawbacks of making biweekly home mortgage payments?

The primary downside of biweekly home mortgage payments is the higher yearly expense. Because you make 26 half-payments over the course of a year, or 13 complete home mortgage payments, you'll make one additional loan payment annually. Depending upon your loan and financials, the extra payment can be a significant problem to handle.

In some cases, biweekly payments may feature additional costs. Some home loan 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 switching to biweekly payments with your loan provider has any associated charges so that you can calculate the true cost of biweekly payments.

Does making biweekly payments minimize 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 staying balance. Because biweekly payments lower your staying 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 boutique mortgage loan provider focusing 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 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 has the ability to keep up with essential changes in the market to deliver the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.
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