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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 start making biweekly home mortgage payments.

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

Curious what a biweekly home loan payment may imply for your financial resources? Whether you're believing about switching an existing home mortgage to biweekly payments or checking out a brand-new home mortgage, it's a good idea to get a clear photo 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 simple to utilize the biweekly home mortgage calculator. First, get in the following info:

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 mortgage, get in the loan balance that remains. Rates of interest: Enter the existing interest rate of your loan. Make sure to be specific down to the decimal point. Loan term: The term of your loan is the number of years until the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that details here.

Once this information has been gone into, all that's left to do is press "Calculate".

Next, it's time to see your benefit results. The biweekly mortgage calculator takes this info and generates two various estimations:

Monthly home loan payments: First, the biweekly mortgage calculator tells you the details of what a month-to-month payment may look like. It calculates your month-to-month payment quantity, the total interest you'll pay over the life time of your loan, and the average interest you'll pay monthly. Biweekly home mortgage payments: Next, the biweekly mortgage calculator supplies the biweekly payment info. You'll see the biweekly mortgage payment amount, overall interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll notice 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 mortgage calculator shows a graph of your loan balance over time when using monthly 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 settle your loan in less time. The more rapidly you settle your loan, the less balance will remain that you require to pay interest on. That suggests 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 mortgage payment schedule might seem minimal, the additional 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, debtors who make biweekly payments pay off their loans much quicker than monthly payment debtors. Paying less overall interest: Because the loan is paid off quicker, less primary loan balance remains to pay interest on. In time, this results in considerably less interest paid. The greater your interest rate, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity faster: As you pay off your home mortgage, the quantity you paid off becomes your equity in your home. When you pay off your home loan quicker with biweekly payments, you'll build equity quicker. This comes in handy if you choose to sell 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 at some point.

Biweekly vs. Bimonthly Payments

Some lending institutions likewise provide the choice to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, typically on the first and 15th. Similar to making a month-to-month home loan payment, this results in 12 payments each year. The only distinction is that payments are made in half, twice monthly.

Making bimonthly home loan payments can help debtors lower the quantity of interest paid over the life of the loan. However, they do not have as huge of an impact as biweekly home loan payments, which assist you pay off your loan much faster, pay less interest with time, and develop equity in your house quicker.

That said, bimonthly loan payments might be a good alternative for some. People who earn money on a bimonthly schedule might discover this payment schedule beneficial. Some might discover that paying their loan immediately after getting their income works well for their capital and budgeting efforts. Others may merely feel better paying a smaller sized amount two times each month, instead of paying a lump sum all at as soon as.

Related Calculators

Interested in other tools to improve your financial resources? We provide a range of calculators to assist you comprehend the financial effects of different types of loan payments, interest rates, and more:

Blended Rate Calculator: Do you have multiple different loans with numerous different rates? Our mixed rate calculator averages these rates into a single rates 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 a crucial metric in determining your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers get approved for special loans with a series of advantages, like low loan rates, no deposit, 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 specialist, use our bank declaration calculator to see what type of home mortgage you can get approved for utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your rate of interest is a wise decision based on your financial resources. Debt Consolidation Calculator: A debt consolidation loan rolls numerous debts into a single payment, generally with a lower rate. See what a loan like this might appear like based upon your existing debts. VA Loan Affordability Calculator: Estimate how much home you can afford when utilizing a VA loan. Mortgage Payoff Calculator: See how altering 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 lease or purchase? Our lease vs buy calculator can assist you compare the brief- and long-lasting expenses involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible financing options and an unmatched client experience. In addition to conventional mortgage options like and VA loans, we also offer a vast array of non-QM loans.

Wish to discover more about your mortgage options? Reach out today and we can help you discover a mortgage that best lines up with your present finances and long-term goals.

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

Frequently Asked Questions

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

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

You can pay for to pay more money each year: On a biweekly payment schedule, you'll be making one additional home loan payment each year. It is necessary to determine whether there's space in your spending plan for this expense. You wish to pay your loan off more rapidly: Depending on the terms of your loan, making biweekly payments will enable you to pay off your loan much more rapidly. 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 accrue interest and you'll pay less interest with time. This can be specifically beneficial to those with a fairly high home mortgage rate.

What are the disadvantages of making biweekly home loan payments?

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

In many cases, biweekly payments may include additional costs. Some home mortgage lending institutions charge an additional fee for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent concept to research whether switching to biweekly payments with your lending institution has any involved costs so that you can compute the real expense of biweekly payments.

Does making biweekly payments minimize the quantity of interest I pay?

Yes. By switching to a biweekly payment schedule, you'll pay much less interest over the term of your loan. Interest accumulates as a percentage of your loan's remaining 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 distinction in total 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 store mortgage loan provider focusing on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage company. Lyons is viewed as a market leader and specialist in realty financing. 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 market to provide the most worth to Griffin's clients. Under Lyons' management, Griffin Funding has made the Inc.
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