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What Is a Biweekly Mortgage Calculator?

Interested in paying your home mortgage off faster and paying less interest over the life of your loan? It might be time to begin making biweekly mortgage payments.
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A month-to-month mortgage payment is basic for most loan providers. On a regular monthly schedule, you make one home loan payment monthly, leading to 12 mortgage payments each fiscal year. When you pay your mortgage on a biweekly schedule, nevertheless, you share of a mortgage payment every two weeks. Throughout a year, this results in 26 half payments or 13 full home mortgage payments - one additional payment compared to a monthly schedule.

Curious what a biweekly home loan payment may indicate for your finances? Whether you're thinking about switching a current home mortgage to biweekly payments or checking out a new mortgage, it's an excellent concept to get a clear image of your payment options. Use our biweekly home mortgage calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to utilize the biweekly mortgage calculator. First, get in the following information:

Principal loan balance: If you have not begun paying your mortgage yet, this will be the total loan amount. If you have actually been paying your home mortgage, go into the loan balance that stays. Interest rate: Enter the current rate of interest of your loan. Ensure to be precise to the decimal point. Loan term: The regard to your loan is the number of years up until the loan is due to be settled. If you have a 30-year loan, your loan term is 30 years. Enter that info here.

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

Next, it's time to see your payoff results. The biweekly mortgage calculator takes this information and produces two various computations:

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

Under the calculator results, the biweekly home mortgage calculator shows a chart of your loan balance with time when making use of regular monthly 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 settle your loan in less time. The faster you pay off your loan, the less balance will remain that you need 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 month-to-month versus biweekly home mortgage payment schedule might seem very little, the additional month's mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments consist of:

Settling the loan quicker: Because there's an additional loan payment every year, debtors who make biweekly payments pay off their loans much quicker than regular monthly payment debtors. Paying less overall interest: Because the loan is settled quicker, less principal loan balance remains 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 pay off your home loan, the amount you paid off becomes your equity in your home. When you pay off your home loan quicker with biweekly payments, you'll build equity faster. This is available in convenient if you choose to sell your home before the loan is paid off or if you wish to secure a home equity loan, home equity credit line, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

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

Making bimonthly home mortgage payments can help borrowers minimize the amount of interest paid over the life of the loan. However, they do not have as huge of an effect as biweekly mortgage payments, which help you settle your loan quicker, pay less interest in time, and construct equity in your house much faster.

That stated, bimonthly loan payments may be an excellent alternative for some. People who make money on a bimonthly schedule might find this payment schedule beneficial. Some might discover that paying their loan instantly after receiving their paycheck works well for their cash circulation and budgeting efforts. Others might simply feel much better paying a smaller amount two times every month, instead of paying a lump amount all at once.

Related Calculators

Interested in other tools to improve your financial resources? We provide a series of calculators to help you understand the financial impacts of various types of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have numerous different loans with several various rates? Our mixed rate calculator averages these rates into a single rate of interest to assist you better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your debt service protection ratio, which is a crucial metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers certify for unique loans with a variety of benefits, like low loan rates, no down payment, and more. Use this calculator to identify 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 sort of home loan you can get approved for utilizing bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your rates of interest is a sensible choice based on your finances. Debt Consolidation Calculator: A debt combination loan rolls multiple financial obligations into a single payment, generally with a lower rate. See what a loan like this might look like based on your existing 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 mortgage payment effects your loan term and the amount of interest paid with our mortgage payoff calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our lease vs purchase 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 lending alternatives and an unrivaled client experience. In addition to traditional home mortgage choices like standard loans and VA loans, we likewise offer a vast array of non-QM loans.

Wish to discover more about your home loan choices? Reach out today and we can help you discover a home loan that best lines up with your current financial resources 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 loan payments?

Finding the ideal payment schedule depends on your specific requirements. Biweekly mortgage payments might be a much 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 very important to figure out whether there's room in your budget for this expense. You wish to pay your loan off more rapidly: Depending on the regards to your loan, making biweekly payments will allow you to pay off your loan far more rapidly. Use our biweekly mortgage calculator with additional payments to see how additional payments effect your loan term. You desire to pay less interest: Because you pay off your loan faster with biweekly home loan payments, your loan will have less time to accrue interest and you'll pay less interest in time. This can be especially useful to those with a relatively high home loan rate.

What are the drawbacks of making biweekly home mortgage payments?

The main disadvantage of biweekly home mortgage payments is the greater annual cost. Because you make 26 half-payments over the course of a year, or 13 full mortgage payments, you'll make one extra loan payment every year. Depending on your loan and financials, the extra payment can be a substantial burden to take on.

Sometimes, biweekly payments might come with extra expenses. Some mortgage loan providers charge an extra cost for biweekly payments or charge a charge for loans that are paid off early. It's a good concept to research whether switching to biweekly payments with your loan provider has any associated fees so that you can compute the true cost of biweekly payments.

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

Yes. By switching to a schedule, you'll pay much less interest over the term of your loan. Interest accumulates as a percentage of your loan's staying balance. Because biweekly payments lower your staying balance at an accelerated pace, 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 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 national shop mortgage loan provider concentrating on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage company. Lyons is seen as a market leader and expert in genuine estate finance. 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 important changes in the industry to provide the most value to Griffin's clients. Under Lyons' management, Griffin Funding has actually made the Inc.
.