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 may be time to begin making biweekly home loan payments.

A month-to-month mortgage payment is basic for the majority of lending institutions. On a regular monthly schedule, you make one mortgage payment every month, resulting in 12 mortgage payments each calendar year. When you pay your home mortgage on a biweekly schedule, nevertheless, you pay half of a home loan payment every 2 weeks. Throughout a year, this leads to 26 half payments or 13 full mortgage payments - one extra payment compared to a month-to-month schedule.

Curious what a biweekly home mortgage payment may mean for your financial resources? Whether you're considering switching a current home mortgage to biweekly payments or checking out a brand-new home loan, it's an excellent concept to get a clear photo of your payment alternatives. Use our biweekly home loan calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you haven't started paying your home mortgage yet, this will be the total loan quantity. If you've been paying your mortgage, enter the loan balance that remains. Rate of interest: Enter the current rates of interest of your loan. Make certain to be precise down to the decimal point. Loan term: The term of your loan is the number of years up until the loan is due to be paid off. If you have a 30-year loan, your loan term is 30 years. Enter that info here.

Once this information has actually been gone into, all that's delegated do is press "Calculate".

Next, it's time to see your reward outcomes. The biweekly home mortgage calculator takes this information and generates two various computations:

Monthly mortgage payments: First, the biweekly mortgage calculator informs you the information of what a monthly payment might appear like. It computes 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 each month. Biweekly home loan payments: Next, the biweekly home mortgage calculator offers the biweekly payment details. You'll see the biweekly mortgage payment quantity, overall interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll see that by making biweekly home loan payments, you can lower the total amount of interest paid over the life of the loan.

Under the calculator results, the biweekly home loan calculator shows a chart of your loan balance with time 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 home loan payments, your loan balance will decrease at a faster rate and you'll pay off your loan in less time. The quicker you settle your loan, the less balance will stay that you need 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 mortgage payment schedule might appear very little, the additional month's home loan payment each year makes a huge difference in the long run. Benefits of biweekly payments include:

Paying off the loan much faster: Because there's an additional loan payment every year, customers who make biweekly payments pay off their loans much quicker than regular monthly payment borrowers. Paying less total interest: Because the loan is settled faster, less primary loan balance remains to pay interest on. Over time, 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 home loan, the quantity you settled becomes your equity in your house. When you settle your home loan faster with biweekly payments, you'll build equity much faster. This is available in handy if you decide to sell your home before the loan is paid off or if you wish to secure a home equity loan, home equity line of credit, or cash-out re-finance at some point.

Biweekly vs. Bimonthly Payments

Some loan providers likewise offer the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments each month, typically on the 1st and 15th. Similar to making a monthly home loan payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times each month.

Making bimonthly home loan payments can assist borrowers reduce the quantity of interest paid over the life of the loan. However, they do not have as big of an impact as biweekly home loan payments, which assist you pay off your loan much faster, pay less interest in time, and develop equity in your home faster.

That said, bimonthly loan payments may be a great option for some. People who get paid on a bimonthly schedule may find this payment schedule beneficial. Some might find that paying their loan immediately after receiving their paycheck works well for their money flow and budgeting efforts. Others might merely feel better paying a smaller sized amount twice each month, rather than paying a swelling sum all at when.

Related Calculators

Interested in other tools to improve your finances? We a variety of calculators to help you understand the monetary impacts of different types of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have several various loans with numerous different rates? Our combined rate calculator averages these rates into a single interest rate to help you better understand how much you're paying in interest. DSCR Calculator: Use this tool to quickly approximate your financial obligation service protection ratio, which is a crucial metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers 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 may appear like for you. Bank Statement Loan Calculator: If you're self-employed or an independent specialist, utilize our bank statement calculator to see what kind of home loan you can qualify for using bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily purchasing down your interest rate is a wise decision based on your finances. Debt Consolidation Calculator: A debt combination loan rolls numerous financial obligations into a single payment, generally with a lower rate. See what a loan like this may look like based upon your present debts. VA Loan Affordability Calculator: Estimate how much home you can pay for when utilizing a VA loan. Mortgage Payoff Calculator: See how changing your mortgage payment impacts your loan term and the quantity of interest paid with our mortgage payoff calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our lease vs buy calculator can assist you compare the short- and long-lasting expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we offer versatile financing alternatives and an unrivaled client experience. In addition to standard mortgage options like conventional loans and VA loans, we also offer a wide variety of non-QM loans.

Wish to discover more about your mortgage choices? Reach out 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!

Frequently Asked Questions

Is it much better to do monthly or biweekly mortgage payments?
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Finding the ideal payment schedule depends on your specific requirements. Biweekly home mortgage payments may be a better choice if:

You can pay for to pay more cash each year: On a biweekly payment schedule, you'll be making one additional home loan payment each year. It is necessary to identify whether there's room in your budget plan for this expense. You wish to pay your loan off more rapidly: Depending on the terms of your loan, making biweekly payments will allow you to pay off your loan far more rapidly. Use our biweekly home mortgage calculator with additional payments to see how additional payments effect your loan term. You wish to pay less interest: Because you pay off your loan more quickly with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest with time. This can be especially beneficial to those with a fairly high mortgage rate.

What are the drawbacks of making biweekly home mortgage payments?

The primary 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 extra loan payment yearly. Depending upon your loan and financials, the additional payment can be a substantial problem to handle.

Sometimes, biweekly payments may feature extra costs. Some home loan lending institutions charge an extra charge for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent concept to research study whether switching to biweekly payments with your lending institution has any involved fees so that you can calculate the real expense of biweekly payments.

Does making biweekly payments reduce 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 accrues as a percentage of your loan's staying balance. Because biweekly payments lower your staying 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 month-to-month vs a mortgage that's paid biweekly.

Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a nationwide shop mortgage loan provider focusing on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as an industry leader and expert in realty finance. 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 modifications in the industry to deliver the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.
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