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 mortgage payments.

A monthly home mortgage payment is basic for a lot of loan providers. On a monthly schedule, you make one home loan payment monthly, resulting in 12 mortgage payments each fiscal year. When you pay your home mortgage on a biweekly schedule, nevertheless, you pay half of a mortgage payment every 2 weeks. Throughout a year, this results in 26 half payments or 13 complete mortgage payments - one extra payment compared to a month-to-month schedule.

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

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you haven't started paying your mortgage yet, this will be the total loan amount. If you've been paying your home mortgage, enter the loan balance that remains.
Interest rate: Enter the present interest rate of your loan. Make certain to be exact 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 info 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 outcomes. The biweekly home mortgage calculator takes this information and generates two various estimations:

Monthly home mortgage payments: First, the biweekly home loan calculator informs you the details of what a monthly payment may look like. It determines your regular monthly payment amount, the total 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 home loan calculator offers 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 average interest paid per duration. You'll discover 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 mortgage calculator shows a graph of your loan balance in time when utilizing month-to-month 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 reduce at a quicker rate and you'll pay off your loan in less time. The more rapidly you pay off your loan, the less balance will remain that you need to pay interest on. That implies you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the distinction between a month-to-month versus biweekly home mortgage payment schedule may seem minimal, the additional month's mortgage payment each year makes a big distinction in the long run. Benefits of biweekly payments include:

Paying off the loan much faster: Because there's an extra loan payment every year, customers who make biweekly payments pay off their loans much faster than month-to-month payment borrowers.
Paying less overall interest: Because the loan is settled quicker, less principal loan balance remains to pay interest on. With time, this results in considerably less interest paid. The greater your rates of interest, the more of a difference paying biweekly can make in the quantity of interest you pay.
Building equity much faster: As you pay off your home mortgage, the amount you settled becomes your equity in your house. When you pay off your mortgage quicker with biweekly payments, you'll develop equity quicker. This comes in handy if you choose to sell your home before the loan is settled or if you desire to secure a home equity loan, home equity line of credit, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some lenders also provide the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments monthly, normally on the first and 15th. Similar to making a monthly mortgage payment, this results in 12 payments each year. The only difference is that payments are made in half, twice monthly.

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

That said, bimonthly loan payments might be a good option for some. People who make money on a bimonthly schedule might find this payment schedule favorable. Some might find that paying their loan right away after receiving their paycheck works well for their money circulation and budgeting efforts. Others might simply feel much better paying a smaller quantity two times every month, rather than paying a lump sum all at as soon as.

Related Calculators

Interested in other tools to enhance your finances? We provide a series of calculators to help you understand the monetary effects of various kinds of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have several various loans with multiple various rates? Our blended rate calculator averages these rates into a single rates of interest to help you much better understand just how much you're paying in interest.
DSCR Calculator: Use this tool to quickly approximate your debt service coverage ratio, which is a key metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers receive unique loans with a series of advantages, like low loan rates, no deposit, and more. Use this calculator to determine what a VA home mortgage may appear like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank statement calculator to see what type of home loan you can qualify for using bank declarations.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly buying down your rates of interest is a wise decision based upon your financial resources.
Debt Consolidation Calculator: A debt combination loan rolls multiple debts into a single payment, typically with a lower rate. See what a loan like this may look like based upon your existing debts.
VA Loan Affordability Calculator: Estimate how much home you can afford when using a VA loan.
Mortgage Payoff Calculator: See how changing your mortgage payment impacts your loan term and the quantity of interest paid with our home loan benefit calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or buy? Our rent vs purchase calculator can assist you compare the short- and long-lasting expenses involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible lending alternatives and an unequaled consumer experience. In addition to conventional home mortgage options like traditional loans and VA loans, we also offer a wide variety of non-QM loans.

Wish to discover more about your home mortgage alternatives? Connect today and we can assist you find a home mortgage that finest lines up with your present finances and long-lasting objectives.

Find the very best loan for you. Reach out today!

Frequently Asked Questions

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

Finding the best payment schedule depends on your specific requirements. Biweekly mortgage payments might be a better option if:

You can pay for 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 figure out whether there's space in your spending plan for this expense.
You want to pay your loan off quicker: Depending on the regards to your loan, making biweekly payments will allow you to settle your loan far more quickly. Use our biweekly home loan calculator with extra payments to see how additional payments effect your loan term.
You wish 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 specifically beneficial to those with a fairly high mortgage rate.

What are the downsides of making biweekly home loan payments?

The primary disadvantage of biweekly home loan 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 problem to handle.

Sometimes, biweekly payments might come with additional costs. Some home mortgage lending institutions charge an extra cost for biweekly payments or charge a penalty for loans that are paid off early. It's a good idea to research whether switching to biweekly payments with your lender has any associated fees so that you can calculate the true expense of biweekly payments.

Does making biweekly payments decrease the amount 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 portion of your loan's staying balance. Because biweekly payments lower your remaining 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 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 store mortgage lender 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 professional in genuine estate finance. 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 industry to deliver the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.