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 many loan providers. On a month-to-month schedule, you make one home loan payment monthly, resulting in 12 home mortgage payments each calendar year. When you pay your home loan on a biweekly schedule, however, you pay half of a home loan payment every two weeks. Throughout 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 mean for your financial resources? Whether you're thinking about changing an existing mortgage to biweekly payments or exploring a brand-new home loan, it's a great concept to get a clear image of your payment alternatives. Use our biweekly home loan calculator to compute the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly home mortgage calculator. First, enter the following info:

Principal loan balance: If you haven't started paying your home mortgage yet, this will be the total loan quantity. If you've been paying your home loan, get in the loan balance that remains.
Rates of interest: Enter the present rates of interest of your loan. Make sure to be precise down to the decimal point.
Loan term: The term of your loan is the number of years up until the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that information here.

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

Next, it's time to see your benefit results. The biweekly home loan calculator takes this information and creates 2 different computations:

Monthly home loan payments: First, the biweekly home mortgage calculator tells you the information of what a regular monthly payment may look like. It computes your month-to-month payment quantity, the overall interest you'll pay over the life time of your loan, and the typical interest you'll pay monthly.
Biweekly mortgage payments: Next, the biweekly mortgage calculator supplies the biweekly payment info. You'll see the biweekly home loan payment quantity, overall interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll observe 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 graph of your loan balance with time when using regular monthly payments (the black line) versus biweekly payments (the red area), 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 settle your loan, the less balance will stay 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 distinction between a monthly versus biweekly home loan payment schedule might appear very little, the additional month's home loan payment each year makes a huge distinction in the long run. Benefits of biweekly payments consist of:

Settling the loan quicker: Because there's an additional loan payment every year, debtors who make biweekly payments settle their loans much faster than month-to-month payment debtors.
Paying less overall interest: Because the loan is paid off faster, less principal loan balance stays to pay interest on. In time, this leads to substantially less interest paid. The greater your rate of interest, the more of a distinction paying biweekly can make in the quantity of interest you pay.
Building equity much faster: As you settle your mortgage, the quantity you paid off becomes your equity in your home. When you pay off your mortgage more rapidly with biweekly payments, you'll construct equity quicker. This comes in convenient if you decide to sell your home before the loan is settled or if you wish to secure a home equity loan, home equity line of credit, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some lending institutions also provide the option to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, generally on the 1st and 15th. Just like 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 mortgage payments can assist customers decrease the quantity of interest paid over the life of the loan. However, they do not have as huge of an effect as biweekly home loan payments, which assist you pay off your loan quicker, pay less interest with time, and develop equity in your house quicker.

That said, bimonthly loan payments might be an excellent option for some. People who earn money on a bimonthly schedule may find this payment schedule favorable. Some might find that paying their loan instantly after receiving their income works well for their capital and budgeting efforts. Others may merely feel better paying a smaller quantity two times each month, rather than paying a lump sum all at when.

Related Calculators

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

Blended Rate Calculator: Do you have multiple different loans with several various rates? Our combined rate calculator averages these rates into a single rates of interest to assist you better understand just how much you're paying in interest.
DSCR Calculator: Use this tool to quickly approximate your debt service coverage ratio, which is a key metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers receive unique loans with a range of benefits, like low loan rates, no deposit, and more. Use this calculator to identify what a VA home loan may appear like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent professional, utilize our bank declaration calculator to see what sort of home mortgage you can receive utilizing bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your interest rate is a wise decision based upon your financial resources.
Debt Consolidation Calculator: A financial obligation consolidation loan rolls several financial obligations into a single payment, usually with a lower rate. See what a loan like this may look like based upon your existing financial obligations.
VA Loan Affordability Calculator: Estimate just how much home you can manage when using a VA loan.
Mortgage Payoff Calculator: See how changing your home mortgage payment effects your loan term and the amount of interest paid with our home loan payoff calculator.
Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our lease vs purchase calculator can help you compare the short- and long-lasting expenses involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible financing choices and an unequaled consumer experience. In addition to conventional home loan options like standard loans and VA loans, we likewise use a wide variety of non-QM loans.

Wish to learn more about your home loan alternatives? Reach out today and we can assist you find a home loan that finest aligns with your present finances and long-term objectives.

Find the best loan for you. Connect today!

Frequently Asked Questions

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

Finding the best payment schedule depends upon your specific requirements. Biweekly home mortgage payments may be a much better option if:

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one additional mortgage payment each year. It is very important to identify whether there's room in your budget plan for this cost.
You want 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 quickly. Use our biweekly home loan calculator with additional payments to see how additional payments impact your loan term.
You wish to pay less interest: Because you pay off your loan faster with biweekly mortgage payments, your loan will have less time to accrue interest and you'll pay less interest in time. This can be particularly advantageous to those with a fairly high home loan rate.

What are the downsides of making biweekly home loan payments?

The primary drawback of biweekly home loan payments is the higher annual expense. Because you make 26 half-payments throughout a year, or 13 complete home loan payments, you'll make one extra loan payment yearly. Depending upon your loan and financials, the additional payment can be a substantial burden to handle.

Sometimes, biweekly payments may include additional costs. Some mortgage lending institutions charge an extra charge for biweekly payments or charge a charge for loans that are paid off early. It's a great idea to research whether switching to biweekly payments with your lender has any associated costs so that you can compute the real 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 regard to your loan. Interest accrues as a percentage of your loan's remaining balance. Because biweekly payments lower your remaining 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 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 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 a market leader and professional in property finance. Lyons has 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 changes in the market to deliver the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.