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 monthly home loan payment is basic for a lot of lenders. On a monthly schedule, you make one home mortgage payment monthly, leading to 12 home mortgage payments each calendar year. When you pay your 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 home mortgage payments - one additional payment compared to a monthly schedule.

Curious what a biweekly mortgage payment may mean for your financial resources? Whether you're believing about changing a current home loan to biweekly payments or checking out a brand-new mortgage, it's an excellent concept to get a clear photo of your payment choices. Use our biweekly mortgage 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 loan calculator. First, enter the following details:

Principal loan balance: If you have not started paying your home mortgage yet, this will be the total loan quantity. If you've been paying your home loan, get in the loan balance that remains.
Rates of interest: Enter the existing interest rate of your loan. Make sure to be specific down to the decimal point.
Loan term: The regard to your loan is the variety of years until the loan is because of be settled. 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 mortgage calculator takes this information and generates two various estimations:

Monthly home mortgage payments: First, the biweekly home loan calculator informs you the information of what a month-to-month payment may appear like. It computes your month-to-month payment quantity, the overall interest you'll pay over the lifetime of your loan, and the typical interest you'll pay every month.
Biweekly home mortgage payments: Next, the biweekly mortgage calculator offers the biweekly payment information. You'll see the biweekly home loan payment amount, total interest you'll pay over the life of the loan, and the average interest paid per period. You'll see that by making biweekly mortgage payments, you can reduce the total amount 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 over time when using monthly payments (the black line) versus biweekly payments (the red location), listed here as the "Accelerated Balance".

You'll see that with biweekly home mortgage payments, your loan balance will reduce at a quicker rate and you'll settle your loan in less time. The quicker you pay off your loan, the less balance will remain 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 regular monthly versus biweekly mortgage payment schedule may appear minimal, the extra month's home loan payment each year makes a huge difference in the long run. Benefits of biweekly payments include:

Paying off the loan faster: Because there's an extra loan payment every year, debtors who make biweekly payments settle their loans much quicker than regular monthly payment borrowers.
Paying less total interest: Because the loan is settled quicker, less principal loan balance stays to pay interest on. In time, this leads to considerably less interest paid. The greater your interest rate, 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 settled becomes your equity in your home. When you pay off your home loan more rapidly with biweekly payments, you'll develop equity faster. This can be found in useful if you decide 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 loan providers likewise provide the choice to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, usually on the first and 15th. Just like making a regular monthly home loan payment, this leads to 12 payments each year. The only distinction is that payments are made in half, twice monthly.

Making bimonthly home loan payments can help borrowers reduce the amount of interest paid over the life of the loan. However, they don't have as big of an effect as biweekly mortgage payments, which help you settle your loan much faster, pay less interest over time, and build equity in your house faster.

That stated, bimonthly loan payments might be a good alternative for some. People who earn money on a bimonthly schedule may discover this payment schedule favorable. Some might discover that paying their loan instantly after receiving their paycheck works well for their money flow and budgeting efforts. Others may simply feel much better paying a smaller sized amount twice each month, rather than paying a lump sum simultaneously.

Related Calculators

Interested in other tools to improve your finances? We offer a range of calculators to assist you understand the monetary impacts of different kinds of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have multiple different loans with numerous various rates? Our mixed rate calculator averages these rates into a single rate of interest to help you much better comprehend just how much you're paying in interest.
DSCR Calculator: Use this tool to quickly estimate your debt service coverage ratio, which is an essential metric in identifying your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers qualify for special loans with a variety of advantages, like low loan rates, no down payment, and more. Use this calculator to identify what a VA home loan may look like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank declaration calculator to see what type of home loan you can get approved for using bank declarations.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily buying down your rate of interest is a sensible choice based upon your finances.
Debt Consolidation Calculator: A debt consolidation loan rolls multiple financial obligations into a single payment, normally with a lower rate. See what a loan like this might appear like based upon your current financial obligations.
VA Loan Affordability Calculator: Estimate just how much home you can pay for when utilizing a VA loan.
Mortgage Payoff Calculator: See how altering your home mortgage 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 lease or purchase? Our lease vs buy calculator can help you compare the short- and long-lasting costs included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible loaning alternatives and an unequaled client experience. In addition to standard home loan options like standard loans and VA loans, we likewise use a wide variety of non-QM loans.

Wish to learn more about your home loan choices? Connect today and we can help you discover a home mortgage that finest aligns with your existing financial resources and long-lasting goals.

Find the finest loan for you. Connect today!

Frequently Asked Questions

Is it much better to do month-to-month or biweekly mortgage payments?

Finding the right payment schedule depends on your particular requirements. Biweekly home loan payments might be a better choice if:

You can afford to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is very important to figure out whether there's space in your budget for this expense.
You want to pay your loan off more quickly: Depending on the regards to your loan, making biweekly payments will allow you to pay off your loan a lot more rapidly. Use our biweekly mortgage calculator with extra payments to see how extra payments effect your loan term.
You want to pay less interest: Because you settle your loan more rapidly with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest gradually. This can be specifically advantageous to those with a relatively high mortgage rate.

What are the disadvantages of making biweekly home mortgage payments?

The primary drawback of biweekly mortgage payments is the higher yearly expense. Because you make 26 half-payments over the course of a year, or 13 full mortgage payments, you'll make one extra loan payment annually. Depending on your loan and financials, the extra payment can be a substantial concern to handle.

Sometimes, biweekly payments may feature extra expenses. Some mortgage lenders charge an extra charge 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 involved costs so that you can determine the true cost of biweekly payments.

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

Yes. By switching to a biweekly payment schedule, you'll pay much less interest over the regard to your loan. Interest accrues as a portion 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 distinction in overall 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 national store mortgage loan provider focusing on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is seen as an industry leader and professional in genuine estate 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 stay up to date with crucial modifications in the market to provide the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.