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 start making biweekly mortgage payments.

A monthly home loan payment is basic for the majority of loan providers. On a monthly schedule, you make one mortgage payment monthly, leading to 12 mortgage payments each calendar year. When you pay your home mortgage on a biweekly schedule, nevertheless, you pay half of a home mortgage payment every two weeks. Throughout a year, this leads to 26 half payments or 13 complete mortgage payments - one additional payment compared to a regular monthly schedule.

Curious what a biweekly home mortgage payment may imply for your financial resources? Whether you're considering switching an existing home loan to biweekly payments or exploring a brand-new mortgage, it's a good idea to get a clear photo of your payment alternatives. 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 use the biweekly mortgage calculator. First, get in the following information:

Principal loan balance: If you have not started paying your home loan yet, this will be the total loan amount. If you've been paying your home loan, go into the loan balance that remains.
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 till the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty 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 payoff outcomes. The biweekly mortgage calculator takes this information and generates two different computations:

Monthly mortgage payments: First, the biweekly home mortgage calculator informs you the details of what a month-to-month payment may appear like. It determines 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 each month.
Biweekly home mortgage payments: Next, the biweekly mortgage calculator offers the biweekly payment information. You'll see the biweekly mortgage payment amount, overall interest you'll pay over the life of the loan, and the average interest paid per duration. You'll discover that by making biweekly mortgage payments, you can lower the overall quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly home 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 location), listed here as the "Accelerated Balance".

You'll see that with biweekly home loan payments, your loan balance will decrease at a much faster rate and you'll settle your loan in less time. The more rapidly you settle your loan, the less balance will stay that you require to pay interest on. That indicates 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 mortgage payment schedule may appear minimal, the extra month's mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Settling the loan quicker: Because there's an extra loan payment every year, customers who make biweekly payments settle their loans much faster than monthly payment debtors.
Paying less overall interest: Because the loan is paid off faster, less principal 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 amount of interest you pay.
Building equity quicker: As you settle your mortgage, the quantity you paid off becomes your equity in your house. When you settle your home loan faster with biweekly payments, you'll develop equity quicker. This can be found in useful if you decide to offer your home before the loan is settled or if you desire 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 option to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, generally on the 1st and 15th. Just like making a monthly 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 mortgage payments can assist debtors reduce the amount of interest paid over the life of the loan. However, they do not have as big of an effect as biweekly mortgage payments, which help you pay off your loan much faster, pay less interest with time, and build equity in your house quicker.

That stated, bimonthly loan payments might be a good alternative for some. People who make money on a bimonthly schedule might find this payment schedule favorable. Some might discover that paying their loan immediately after getting their income works well for their capital and budgeting efforts. Others might merely feel better paying a smaller quantity twice monthly, rather than paying a lump amount all at as soon as.

Related Calculators

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

Blended Rate Calculator: Do you have numerous various loans with several various rates? Our mixed rate calculator averages these rates into a single rate of interest to assist you better comprehend how much you're paying in interest.
DSCR Calculator: Use this tool to rapidly approximate your financial obligation service coverage ratio, which is an essential metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home purchasers qualify for special loans with a series of benefits, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home mortgage might appear like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent contractor, use our bank statement calculator to see what kind of home loan you can qualify for utilizing bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily purchasing down your interest rate is a wise decision based on your financial resources.
Debt Consolidation Calculator: A financial obligation consolidation loan rolls several debts into a single payment, generally with a lower rate. See what a loan like this may appear like based upon your existing financial obligations.
VA Loan Affordability Calculator: Estimate how much home you can afford when utilizing 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 mortgage reward calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or buy? Our rent vs buy calculator can help you compare the short- and long-term expenses included with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible loaning alternatives and an unrivaled customer experience. In addition to traditional home loan choices like standard loans and VA loans, we also provide a broad range of non-QM loans.

Want to discover more about your home mortgage alternatives? Connect today and we can assist you discover a home mortgage that best lines up with your existing finances and long-lasting goals.

Find the finest loan for you. Connect today!

Frequently Asked Questions

Is it better to do regular monthly or biweekly mortgage payments?

Finding the ideal payment schedule depends on your particular requirements. Biweekly home mortgage payments may be a better option if:

You can manage to pay more money each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is necessary to identify 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 far more rapidly. Use our biweekly home loan calculator with extra payments to see how additional payments impact your loan term.
You wish to pay less interest: Because you pay off your loan more rapidly with biweekly home mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest gradually. This can be especially helpful to those with a relatively high mortgage rate.

What are the drawbacks of making biweekly mortgage payments?

The primary disadvantage of biweekly home mortgage payments is the greater yearly expense. Because you make 26 half-payments over the course of a year, or 13 full home mortgage payments, you'll make one additional loan payment each year. Depending upon your loan and financials, the extra payment can be a substantial burden to handle.

In some cases, biweekly payments might include 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 a good concept to research whether changing to biweekly payments with your loan provider has any associated fees so that you can determine the true cost 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 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 speed, 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.

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 business. Lyons is viewed as a market leader and professional 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 stay up to date with crucial modifications in the industry to provide the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.