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What Is a Biweekly Mortgage Calculator?
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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 mortgage payments.

A regular monthly home loan payment is basic for many lenders. On a regular monthly schedule, you make one home loan payment every month, leading to 12 home loan payments each calendar year. When you pay your home loan on a biweekly schedule, however, you share of a home loan payment every 2 weeks. Throughout a year, this leads to 26 half payments or 13 complete home mortgage payments - one extra payment compared to a month-to-month schedule.

Curious what a biweekly home mortgage payment may suggest for your financial resources? Whether you're thinking of switching a current mortgage to biweekly payments or checking out a brand-new home mortgage, it's a good idea to get a clear image of your payment choices. Use our biweekly home mortgage calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly mortgage calculator. First, go into the following details:

Principal loan balance: If you haven't begun paying your home loan yet, this will be the total loan quantity. If you've been paying your home loan, get in the loan balance that stays. Rates of interest: Enter the current interest rate of your loan. Make certain to be specific down to the decimal point. Loan term: The term of your loan is the variety of years up until the loan is because of be settled. If you have a 30-year loan, your loan term is thirty years. Enter that information here.

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

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

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

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

You'll see that with biweekly mortgage payments, your loan balance will decrease at a much faster rate and you'll pay off your loan in less time. The quicker you settle your loan, the less balance will remain 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 month-to-month versus biweekly home loan payment schedule might appear minimal, 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 additional loan payment every year, borrowers who make biweekly payments pay off their loans much faster than regular monthly payment customers. Paying less general interest: Because the loan is settled faster, less primary loan balance stays to pay interest on. In time, this results in significantly less interest paid. The greater your rate of interest, the more of a distinction paying biweekly can make in the amount of interest you pay. Building equity much faster: As you settle your mortgage, the amount you paid off becomes your equity in your home. When you pay off your home loan quicker with biweekly payments, you'll develop equity faster. This is available in useful if you choose to offer your home before the loan is paid off or if you wish to take out a home equity loan, home equity line of credit, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

Some lenders also use the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments monthly, usually on the 1st and 15th. Just like making a month-to-month mortgage payment, this results in 12 payments each year. The only difference is that payments are made in half, twice monthly.

Making bimonthly home mortgage payments can assist borrowers minimize 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 settle your loan much faster, pay less interest in time, and develop equity in your house much faster.

That said, bimonthly loan payments might be an excellent alternative for some. People who get paid on a bimonthly schedule might discover this payment schedule favorable. Some might find 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 amount two times every month, instead of paying a lump amount simultaneously.

Related Calculators

Interested in other tools to enhance your financial resources? We provide a variety of calculators to assist you comprehend the financial impacts of various types of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have numerous different loans with numerous different rates? Our combined rate calculator averages these rates into a single interest rate to help you better understand just how much you're paying in interest. DSCR Calculator: Use this tool to quickly approximate your financial obligation service coverage 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 mortgage may look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent professional, use our bank statement calculator to see what kind of home loan you can certify for using bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly buying down your rates of interest is a sensible choice based on your finances. Debt Consolidation Calculator: A financial obligation consolidation loan rolls several debts into a single payment, usually with a lower rate. See what a loan like this may appear like based upon your existing financial obligations. 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 mortgage 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 rent or purchase? Our rent vs purchase calculator can help you compare the short- and long-lasting costs included with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible loaning options and an unrivaled client experience. In addition to standard home mortgage choices like standard loans and VA loans, we also use a large range of non-QM loans.

Want to learn more about your home mortgage options? Reach out today and we can help you discover a mortgage that best lines up with your current financial resources and long-term goals.

Find the finest loan for you. Connect today!

Frequently Asked Questions

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

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

You can afford to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home mortgage payment each year. It is very important to determine whether there's space in your budget plan 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 far more quickly. Use our biweekly mortgage calculator with additional payments to see how extra payments effect your loan term. You wish to pay less interest: Because you pay off your loan quicker with biweekly home loan payments, your loan will have less time to accrue interest and you'll pay less interest with time. This can be especially useful to those with a fairly high home mortgage rate.

What are the disadvantages of making biweekly home loan payments?

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

Sometimes, biweekly payments may come with extra expenses. Some mortgage loan providers charge an additional fee for biweekly payments or charge a charge for loans that are settled early. It's a good 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 reduce the quantity of interest I pay?

Yes. By changing to a biweekly payment schedule, you'll pay much less interest over the term of your loan. Interest accrues as a percentage of your loan's staying balance. Because biweekly payments lower your staying 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 total interest paid on a that's paid 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 concentrating on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is viewed as a market leader and specialist in realty financing. Lyons has been featured 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 essential modifications in the market to deliver the most value to Griffin's clients. Under Lyons' management, Griffin Funding has made the Inc.
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