What Is a Biweekly Mortgage Calculator?

Interested in paying your mortgage off faster and paying less interest over the life of your loan? It might be time to begin making biweekly home loan payments.

A monthly home loan payment is basic for the majority of lenders. On a monthly schedule, you make one mortgage payment monthly, resulting in 12 home mortgage payments each fiscal year. When you pay your home mortgage on a biweekly schedule, however, you share of a mortgage payment every two weeks. Throughout a year, this leads to 26 half payments or 13 full mortgage payments - one additional payment compared to a regular monthly schedule.

Curious what a biweekly mortgage payment may imply for your finances? Whether you're thinking about changing a current mortgage to biweekly payments or checking out a new mortgage, it's a great idea to get a clear image of your payment alternatives. Use our biweekly home loan calculator to determine the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to utilize the biweekly home loan calculator. First, go into the following details:

Principal loan balance: If you have not begun paying your home loan yet, this will be the total loan amount. If you have actually been paying your home loan, get in the loan balance that remains. Rates of interest: Enter the existing rate of interest of your loan. Ensure to be specific to the decimal point. Loan term: The regard to your loan is the number 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 information here.

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

Next, it's time to see your benefit results. The biweekly home mortgage calculator takes this details and creates two different calculations:

Monthly home loan payments: First, the biweekly home mortgage calculator informs you the information of what a monthly payment might appear like. It computes your month-to-month payment quantity, 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 mortgage calculator provides the biweekly payment details. You'll see the biweekly home loan payment quantity, overall interest you'll pay over the life of the loan, and the average interest paid per period. You'll notice that by making biweekly home loan payments, you can reduce the overall quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator displays a graph of your loan balance with 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 decrease at a quicker rate and you'll pay off 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 means you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the difference between a regular monthly versus biweekly home mortgage payment schedule might seem minimal, the additional month's mortgage payment each year makes a huge difference in the long run. Benefits of biweekly payments consist of:

Paying off the loan quicker: Because there's an additional loan payment every year, borrowers who make biweekly payments settle their loans much quicker than month-to-month payment borrowers. Paying less total interest: Because the loan is settled quicker, less primary loan balance stays to pay interest on. Gradually, this results in substantially less interest paid. The greater your interest rate, the more of a distinction paying biweekly can make in the quantity of interest you pay. Building equity faster: As you settle your home loan, the amount you paid off becomes your equity in your house. When you settle your mortgage faster with biweekly payments, you'll build equity faster. This is available in convenient 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 point.

Biweekly vs. Bimonthly Payments

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

Making bimonthly mortgage payments can help customers lower the quantity of interest paid over the life of the loan. However, they don't have as huge of an effect as biweekly home mortgage payments, which assist you pay off your loan faster, pay less interest over time, and construct equity in your house quicker.

That stated, bimonthly loan payments may be an excellent option for some. People who get paid on a bimonthly schedule might discover this payment schedule beneficial. Some might find that paying their loan right away after receiving their paycheck works well for their capital and budgeting efforts. Others might simply feel much better paying a smaller amount twice monthly, rather than paying a swelling amount simultaneously.

Related Calculators

Interested in other tools to improve your financial resources? We provide a variety of calculators to assist you understand the monetary effects of different kinds of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have multiple different loans with numerous different rates? Our blended rate calculator averages these rates into a single rates of interest to help you better comprehend just how much you're paying in interest. DSCR Calculator: Use this tool to quickly estimate your financial obligation service protection ratio, which is a key metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers certify for unique loans with a series of benefits, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home loan might look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent professional, use our bank declaration calculator to see what sort of home mortgage you can qualify for utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily purchasing down your rate of interest is a sensible choice based on your financial resources. Debt Consolidation Calculator: A financial obligation combination loan rolls numerous debts into a single payment, typically with a lower rate. See what a loan like this might appear like based on your existing debts. VA Loan Affordability Calculator: Estimate how much home you can pay for when using a VA loan. Mortgage Payoff Calculator: See how changing your mortgage payment effects 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 purchase? Our rent vs buy calculator can assist you compare the short- and involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible lending alternatives and an unequaled customer experience. In addition to traditional home loan alternatives like conventional loans and VA loans, we likewise use a large range of non-QM loans.

Wish to find out more about your mortgage choices? Reach out today and we can help you discover a home mortgage that best aligns with your present financial resources and long-term goals.

Find the very best loan for you. Connect today!

Frequently Asked Questions

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

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

You can pay for 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 identify whether there's space in your budget plan for this expense. You wish to pay your loan off faster: Depending upon the terms of your loan, making biweekly payments will enable you to pay off your loan a lot more rapidly. Use our biweekly mortgage calculator with additional payments to see how extra payments effect your loan term. You desire to pay less interest: Because you settle your loan quicker with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest gradually. This can be particularly advantageous to those with a reasonably high home mortgage rate.

What are the downsides of making biweekly home mortgage payments?

The primary downside of biweekly mortgage payments is the higher annual expense. Because you make 26 half-payments over the course of a year, or 13 complete mortgage payments, you'll make one additional loan payment each year. Depending upon your loan and financials, the additional payment can be a considerable burden to take on.

Sometimes, biweekly payments might feature extra costs. Some mortgage lending institutions charge an additional cost for biweekly payments or charge a penalty for loans that are settled 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 lower 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 accumulates as a percentage of your loan's staying balance. Because biweekly payments lower your staying balance at an accelerated rate, the interest on the balance will be less, too.
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Use our mortgage calculator for biweekly payments to see the distinction in overall interest paid on a mortgage that's paid 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 nationwide boutique mortgage lender focusing 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 professional in real estate financing. Lyons has been included 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 crucial modifications in the market to deliver the most value to Griffin's customers. Under Lyons' management, Griffin Funding has made the Inc.
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