What Is a Biweekly Mortgage Calculator?

Interested in paying your home loan off faster and paying less interest over the life of your loan? It may be time to start making biweekly home loan payments.
realtor.com
A monthly home is basic for many loan providers. On a monthly schedule, you make one home loan payment each month, resulting in 12 home mortgage payments each calendar year. When you pay your mortgage on a biweekly schedule, however, you share of a home mortgage payment every 2 weeks. Over the course of a year, this leads to 26 half payments or 13 complete home loan payments - one extra payment compared to a monthly schedule.

Curious what a biweekly mortgage payment may mean for your finances? Whether you're considering changing an existing home mortgage to biweekly payments or checking out a new mortgage, it's a good concept to get a clear photo of your payment choices. 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 use the biweekly home mortgage calculator. First, get in the following information:

Principal loan balance: If you haven't started paying your mortgage yet, this will be the overall loan amount. If you have actually been paying your home mortgage, get in the loan balance that stays. Rate of interest: Enter the current rates of interest of your loan. Make sure to be precise to the decimal point. Loan term: The regard to your loan is the variety 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 details has actually been gone into, all that's left to do is press "Calculate".

Next, it's time to see your reward outcomes. The biweekly home mortgage calculator takes this information and creates 2 different calculations:

Monthly mortgage payments: First, the biweekly home mortgage calculator informs you the details of what a month-to-month payment may look like. It determines your monthly payment quantity, the total interest you'll pay over the lifetime of your loan, and the average interest you'll pay monthly. Biweekly home mortgage payments: Next, the biweekly home mortgage calculator offers the biweekly payment details. You'll see the biweekly home loan payment quantity, total interest you'll pay over the life of the loan, and the average interest paid per period. You'll see 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 home mortgage calculator displays a graph of your loan balance in time when making use of regular monthly 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 decrease at a faster rate and you'll settle your loan in less time. The quicker 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 difference in between a month-to-month versus biweekly home loan payment schedule may appear very little, the additional month's mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Paying off the loan quicker: Because there's an additional loan payment every year, borrowers who make biweekly payments pay off their loans much faster than month-to-month payment debtors. Paying less general 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 higher your interest rate, the more of a difference paying biweekly can make in the quantity of interest you pay. Building equity quicker: As you pay off your mortgage, the quantity you paid off becomes your equity in your house. When you pay off your home mortgage faster with biweekly payments, you'll develop equity quicker. This comes in helpful if you decide to offer your home before the loan is settled or if you desire to secure a home equity loan, home equity credit line, or cash-out refinance eventually.

Biweekly vs. Bimonthly Payments

Some loan providers likewise provide the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments every month, normally on the first and 15th. Just like making a month-to-month home mortgage 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 assist customers reduce the amount of interest paid over the life of the loan. However, they do not have as big of an impact as biweekly mortgage payments, which help you settle your loan faster, pay less interest in time, and develop equity in your home faster.

That stated, bimonthly loan payments might be a great option for some. People who get paid on a bimonthly schedule might discover this payment schedule favorable. Some might discover that paying their loan immediately after receiving their paycheck works well for their cash flow and budgeting efforts. Others may just feel much better paying a smaller sized quantity two times monthly, instead of paying a lump amount at one time.

Related Calculators

Interested in other tools to improve your finances? We offer a variety of calculators to help you comprehend the monetary effects of various kinds of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have multiple different loans with numerous different rates? Our blended rate calculator averages these rates into a single rates of interest to assist you much better comprehend just how much you're paying in interest. DSCR Calculator: Use this tool to quickly estimate your debt service coverage ratio, which is a key metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers receive unique loans with a series of advantages, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home loan might appear 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 loan you can receive utilizing bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your rates of interest is a smart decision based on your finances. Debt Consolidation Calculator: A financial obligation consolidation loan rolls numerous debts into a single payment, typically with a lower rate. See what a loan like this may look like based upon your existing debts. VA Loan Affordability Calculator: Estimate how much home you can pay for when utilizing a VA loan. Mortgage Payoff Calculator: See how altering your mortgage payment impacts your loan term and the amount of interest paid with our home loan benefit calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs buy calculator can help you compare the brief- and long-term costs included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile financing choices and an unrivaled consumer experience. In addition to conventional home loan alternatives like traditional loans and VA loans, we also use a large variety of non-QM loans.

Wish to discover more about your mortgage options? Reach out today and we can assist you discover a home mortgage that finest lines up with your current financial resources and long-lasting goals.

Find the very best 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 upon your particular needs. Biweekly home loan payments might be a much better choice if:

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one additional home mortgage payment each year. It is necessary to figure out whether there's space in your spending plan for this expense. You wish to pay your loan off quicker: Depending upon the terms of your loan, making biweekly payments will allow you to pay off your loan a lot more quickly. Use our biweekly home loan calculator with extra payments to see how extra payments effect your loan term. You want to pay less interest: Because you settle your loan more quickly with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest gradually. This can be particularly advantageous to those with a relatively high home loan rate.

What are the disadvantages of making biweekly home loan payments?

The primary disadvantage of biweekly home loan payments is the higher yearly expense. Because you make 26 half-payments over the course of a year, or 13 complete mortgage payments, you'll make one additional loan payment annually. Depending upon your loan and financials, the extra payment can be a substantial problem to take on.

In many cases, biweekly payments may come with extra costs. Some mortgage loan providers charge an additional charge for biweekly payments or charge a charge for loans that are paid off early. It's an excellent concept to research study whether changing to biweekly payments with your loan provider has any involved costs so that you can calculate the real expense of biweekly payments.

Does making biweekly payments lower the amount 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 portion of your loan's remaining balance. Because biweekly payments lower your staying balance at an accelerated pace, 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 regular 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 national boutique mortgage lending institution focusing on delivering 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 specialist in real estate finance. Lyons has actually been included in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able to stay up to date with essential modifications in the market to deliver the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.
.