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 mortgage payments.

A monthly home loan payment is basic for many loan providers. On a regular monthly schedule, you make one mortgage payment every month, resulting in 12 home loan payments each fiscal year. When you pay your home mortgage 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 complete mortgage payments - one extra payment compared to a regular monthly schedule.

Curious what a biweekly mortgage payment may suggest for your financial resources? Whether you're thinking about switching a current home loan to biweekly payments or checking out a new home loan, it's a good concept to get a clear photo of your payment options. Use our biweekly home loan calculator to compute the distinction 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 haven't started paying your home loan yet, this will be the total loan amount. If you have actually been paying your home mortgage, enter the loan balance that stays.
Rate of interest: Enter the current rate of interest of your loan. Ensure to be exact to the decimal point.
Loan term: The regard to your loan is the number of years until the loan is due to be settled. If you have a 30-year loan, your loan term is thirty years. Enter that info here.

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

Next, it's time to see your reward outcomes. The biweekly home loan calculator takes this info and generates two different computations:

Monthly home mortgage payments: First, the biweekly home loan calculator informs you the details of what a month-to-month payment may appear like. It calculates your monthly payment quantity, the overall interest you'll pay over the lifetime of your loan, and the average interest you'll pay each month.
Biweekly mortgage payments: Next, the biweekly home mortgage calculator offers the biweekly payment details. 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 notice that by making biweekly home mortgage payments, you can decrease the total quantity 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 with time when using 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 mortgage payments, your loan balance will reduce at a quicker 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 need 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 monthly versus biweekly home loan payment schedule might appear minimal, the extra month's mortgage payment each year makes a huge difference in the long run. Benefits of biweekly payments consist of:

Settling the loan quicker: Because there's an extra loan payment every year, debtors who make biweekly payments pay off their loans much faster than monthly payment debtors.
Paying less general interest: Because the loan is settled faster, less principal loan balance remains to pay interest on. Over time, this leads to significantly less interest paid. The higher your interest rate, the more of a distinction paying biweekly can make in the quantity of interest you pay.
Building equity much faster: As you pay off your mortgage, the quantity you paid off becomes your equity in your home. When you settle your mortgage faster with biweekly payments, you'll develop equity much faster. This is available in convenient if you decide to offer your home before the loan is paid off or if you wish to get a home equity loan, home equity line of credit, or cash-out refinance eventually.

Biweekly vs. Bimonthly Payments

Some loan providers also provide the option to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments every month, usually on the 1st and 15th. Similar to making a regular monthly home loan payment, this leads to 12 payments each year. The only difference is that payments are made in half, twice monthly.

Making bimonthly home loan payments can help borrowers minimize the quantity 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 assist you settle your loan quicker, pay less interest gradually, and build equity in your home much faster.

That said, bimonthly loan payments might be a good option for some. People who earn money on a bimonthly schedule might find this payment schedule favorable. Some might discover that paying their loan instantly after receiving their income works well for their capital and budgeting efforts. Others may simply feel much better paying a smaller amount two times every month, instead of paying a lump amount all at once.

Related Calculators

Interested in other tools to improve your finances? We provide a range of calculators to assist you comprehend the monetary impacts of various kinds of loan payments, rates 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 rates 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 protection ratio, which is an essential metric in identifying your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers certify for unique loans with a variety of benefits, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home mortgage might look like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank statement calculator to see what kind of home mortgage you can get approved for using bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily buying down your rate of interest is a smart decision based on your finances.
Debt Consolidation Calculator: A financial obligation consolidation loan rolls several financial obligations into a single payment, typically with a lower rate. See what a loan like this may look like based on your current debts.
VA Loan Affordability Calculator: Estimate just how much home you can manage when utilizing a VA loan.
Mortgage Payoff Calculator: See how changing your home mortgage payment effects your loan term and the quantity of interest paid with our mortgage reward calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our lease vs purchase calculator can help you compare the short- and long-term expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible loaning options and an unequaled client experience. In addition to conventional mortgage options like traditional loans and VA loans, we likewise use a vast array of non-QM loans.

Wish to learn more about your home loan alternatives? Connect today and we can assist you discover a mortgage that best aligns with your present financial resources and long-term objectives.

Find the finest loan for you. Reach out today!

Frequently Asked Questions

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

Finding the right payment schedule depends upon your particular needs. Biweekly mortgage payments may be a much better choice if:

You can pay for to pay more cash each year: On a biweekly payment schedule, you'll be making one extra mortgage payment each year. It's essential to determine whether there's room in your spending plan for this cost.
You wish to pay your loan off more rapidly: Depending upon the terms of your loan, making biweekly payments will enable you to pay off your loan much more quickly. Use our biweekly home mortgage calculator with additional payments to see how additional payments effect your loan term.
You wish to pay less interest: Because you settle your loan faster with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest with time. This can be specifically advantageous to those with a fairly high mortgage rate.

What are the disadvantages of making biweekly mortgage payments?

The main downside of biweekly home mortgage payments is the higher 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 annually. Depending upon your loan and financials, the extra payment can be a considerable burden to handle.

Sometimes, biweekly payments may feature additional expenses. Some home loan lending institutions charge an extra charge for biweekly payments or charge a penalty for loans that are paid off early. It's a good idea to research study whether switching to biweekly payments with your loan provider has any associated costs so that you can compute the true expense of biweekly payments.

Does making biweekly payments reduce the quantity 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 percentage of your loan's staying balance. Because biweekly payments lower your remaining balance at a sped up rate, 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 nationwide store mortgage loan provider concentrating on providing 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is viewed as an industry leader and expert in property 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 essential modifications in the industry to provide the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.