What Is a Biweekly Mortgage Calculator?
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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 home loan payments.

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

Curious what a biweekly home loan payment may mean for your finances? Whether you're thinking of changing an existing mortgage to biweekly payments or exploring a new home loan, it's a great concept to get a clear photo of your payment choices. Use our biweekly mortgage calculator to determine 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 have not started paying your mortgage yet, this will be the overall loan quantity. If you've been paying your home loan, enter the loan balance that stays. Rate of interest: Enter the present rates of interest of your loan. Make certain to be exact down to the decimal point. Loan term: The term of 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 thirty years. Enter that details here.

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

Next, it's time to see your reward results. The biweekly mortgage calculator takes this information and generates two different calculations:

Monthly home loan payments: First, the biweekly home mortgage calculator tells you the information of what a monthly payment might appear like. It calculates your monthly payment amount, the total interest you'll pay over the life time 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 mortgage payment amount, total interest you'll pay over the life of the loan, and the interest paid per duration. You'll notice that by making biweekly home 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 displays a chart of your loan balance over time when using 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 decrease at a faster rate and you'll pay off your loan in less time. The faster 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 monthly versus biweekly mortgage payment schedule may appear very little, the extra month's home mortgage payment each year makes a big distinction in the long run. Benefits of biweekly payments include:

Paying off the loan quicker: Because there's an extra loan payment every year, debtors who make biweekly payments pay off their loans much faster than month-to-month payment debtors. Paying less total interest: Because the loan is paid off much faster, less primary loan balance stays to pay interest on. In time, this results in substantially less interest paid. The higher your interest rate, the more of a difference paying biweekly can make in the quantity of interest you pay. Building equity faster: As you settle your home loan, the quantity you paid off becomes your equity in your house. When you pay off your home loan more rapidly with biweekly payments, you'll build equity much faster. This is available in helpful if you decide to offer your home before the loan is settled or if you desire to get a home equity loan, home equity line of credit, or cash-out re-finance at some time.

Biweekly vs. Bimonthly Payments

Some loan providers likewise offer the alternative to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, typically on the 1st and 15th. Similar to making a monthly home loan payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times per month.

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

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

Related Calculators

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

Blended Rate Calculator: Do you have multiple different loans with multiple different rates? Our combined rate calculator averages these rates into a single rate of interest to help you better understand just how much you're paying in interest. DSCR Calculator: Use this tool to rapidly estimate your financial obligation service coverage ratio, which is an essential metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers qualify for unique loans with a variety of benefits, like low loan rates, no deposit, and more. Use this calculator to identify what a VA home loan might look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent specialist, use our bank statement calculator to see what type of mortgage you can get approved for utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your interest rate is a sensible choice based on your finances. Debt Consolidation Calculator: A financial obligation combination loan rolls multiple debts into a single payment, generally 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 afford when utilizing a VA loan. Mortgage Payoff Calculator: See how changing your home mortgage payment impacts your loan term and the amount of interest paid with our home mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our rent vs purchase calculator can assist you compare the short- and long-lasting costs involved with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we use versatile loaning options and an unmatched client experience. In addition to standard mortgage alternatives like conventional loans and VA loans, we also provide a wide variety of non-QM loans.

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

Find the very best loan for you. Connect today!

Frequently Asked Questions

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

Finding the ideal payment schedule depends upon your specific needs. Biweekly mortgage payments may be a better option 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's important to figure out whether there's space in your budget plan for this expense. You wish to pay your loan off faster: Depending upon the regards to your loan, making biweekly payments will enable you to pay off your loan a lot more quickly. Use our biweekly mortgage calculator with extra payments to see how additional payments effect your loan term. You wish to pay less interest: Because you settle your loan more quickly with biweekly home mortgage payments, your loan will have less time to accrue interest and you'll pay less interest in time. This can be particularly useful to those with a relatively high mortgage rate.

What are the disadvantages of making biweekly home loan payments?

The primary drawback of biweekly mortgage payments is the greater yearly cost. Because you make 26 half-payments throughout a year, or 13 complete mortgage payments, you'll make one additional loan payment annually. Depending upon your loan and financials, the additional payment can be a substantial concern to take on.

In many cases, biweekly payments might feature extra costs. Some home loan lending institutions charge an extra fee for biweekly payments or charge a charge for loans that are settled early. It's an excellent idea to research whether changing to biweekly payments with your loan provider has any associated charges so that you can determine the real cost of biweekly payments.

Does making biweekly payments lower 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 accumulates as a portion of your loan's remaining balance. Because biweekly payments lower your staying balance at a sped up pace, 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 mortgage that's paid month-to-month 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 store mortgage lending institution focusing on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage company. Lyons is viewed as an industry leader and professional in property 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 essential changes in the market to provide the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.
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