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 begin making biweekly home loan payments.
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A monthly home loan payment is standard for many loan providers. On a monthly schedule, you make one mortgage payment every month, resulting in 12 home loan payments each fiscal year. When you pay your mortgage on a biweekly schedule, nevertheless, you pay half of a home loan payment every two weeks. Throughout a year, this results in 26 half payments or 13 complete home loan payments - one additional payment compared to a regular monthly schedule.

Curious what a biweekly home mortgage payment may indicate for your financial resources? Whether you're thinking about changing a current home mortgage to biweekly payments or checking out a brand-new home loan, it's a great idea to get a clear picture of your payment choices. Use our biweekly mortgage calculator to determine the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you haven't started paying your mortgage yet, this will be the total loan quantity. If you've been paying your mortgage, go into the loan balance that remains. Rate of interest: Enter the present interest rate of your loan. Make certain to be exact to the decimal point. Loan term: The term of your loan is the variety 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 details has been gotten in, all that's delegated do is press "Calculate".

Next, it's time to see your payoff outcomes. The biweekly home loan calculator takes this details and produces two various estimations:

Monthly home mortgage payments: First, the biweekly mortgage calculator informs you the details of what a monthly payment might appear like. It computes your regular monthly payment quantity, the total interest you'll pay over the life time of your loan, and the typical interest you'll pay every month. Biweekly home mortgage payments: Next, the biweekly home 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 period. You'll see that by making biweekly home mortgage payments, you can reduce the overall quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly home loan calculator displays a chart of your loan balance gradually 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 decrease 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 stay 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 monthly versus biweekly home loan payment schedule may appear minimal, the additional month's home mortgage payment each year makes a big distinction in the long run. Benefits of biweekly payments include:

Paying off the loan quicker: Because there's an additional loan payment every year, customers who make biweekly payments pay off their loans much faster than regular monthly payment borrowers. Paying less total interest: Because the loan is settled much faster, less principal loan balance stays to pay interest on. In time, this leads to considerably less interest paid. The greater your interest rate, the more of a difference paying biweekly can make in the quantity of interest you pay. Building equity quicker: As you settle your home mortgage, the amount you settled becomes your equity in your house. When you settle your home mortgage more rapidly with biweekly payments, you'll develop equity faster. This is available in handy if you choose to offer your home before the loan is settled or if you wish to secure a home equity loan, home equity credit line, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

Some lenders also provide the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments each month, usually on the first and 15th. Just like making a monthly mortgage payment, this results in 12 payments each year. The only difference is that payments are made in half, twice per month.

Making bimonthly mortgage payments can assist borrowers decrease the quantity of interest paid over the life of the loan. However, they don't have as huge of an effect as biweekly home loan payments, which help you pay off your loan quicker, pay less interest in time, and construct equity in your home quicker.

That stated, bimonthly loan payments may be a good option for some. People who get paid on a bimonthly schedule might discover this payment schedule beneficial. Some may discover that paying their loan immediately after receiving their income works well for their money circulation and budgeting efforts. Others may much better paying a smaller sized amount two times monthly, instead of paying a lump amount at one time.

Related Calculators

Interested in other tools to enhance your finances? We provide a variety of calculators to assist you comprehend the financial impacts of various kinds of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have several different loans with multiple different rates? Our mixed rate calculator averages these rates into a single interest rate to assist you better understand just how much you're paying in interest. DSCR Calculator: Use this tool to quickly estimate your financial obligation service coverage ratio, which is a crucial metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers get approved for unique loans with a series of advantages, like low loan rates, no down payment, and more. Use this calculator to identify what a VA mortgage might look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, use our bank declaration calculator to see what sort of home loan you can get approved for using bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily purchasing down your rate of interest is a wise choice based upon your finances. Debt Consolidation Calculator: A debt consolidation loan rolls several debts into a single payment, generally with a lower rate. See what a loan like this might look like based on your present debts. VA Loan Affordability Calculator: Estimate just 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 amount of interest paid with our home mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our lease vs purchase calculator can help you compare the brief- and long-term costs involved with both choices.

Explore Flexible Mortgage Options

At Griffin Funding, we offer versatile loaning alternatives and an unrivaled client experience. In addition to traditional mortgage options like conventional loans and VA loans, we likewise offer a wide variety of non-QM loans.

Wish to discover more about your home loan options? Reach out today and we can help you find a home loan that finest aligns with your current financial resources and long-lasting objectives.

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

Frequently Asked Questions

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

Finding the right payment schedule depends upon your specific needs. Biweekly home loan payments might be a 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 figure out whether there's space in your budget for this expense. You desire to pay your loan off quicker: Depending on the regards to your loan, making biweekly payments will allow you to settle your loan much more rapidly. Use our biweekly home loan calculator with additional payments to see how extra payments impact your loan term. You want to pay less interest: Because you settle your loan quicker with biweekly mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest in time. This can be specifically helpful to those with a relatively high home loan rate.

What are the downsides of making biweekly mortgage payments?

The primary disadvantage of biweekly home mortgage payments is the higher yearly cost. Because you make 26 half-payments throughout a year, or 13 complete home mortgage payments, you'll make one additional loan payment every year. Depending on your loan and financials, the additional payment can be a significant burden to handle.

Sometimes, biweekly payments may come with extra costs. Some home mortgage lending institutions charge an extra cost for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent idea to research study whether changing to biweekly payments with your lender has any associated costs so that you can calculate the true cost 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 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 distinction 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 national boutique mortgage lender focusing on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is viewed as an industry leader and specialist in realty 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 keep up with important changes in the industry to deliver the most value to Griffin's customers. Under Lyons' management, Griffin Funding has made the Inc.
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