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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 might be time to start making biweekly home mortgage payments.

A regular monthly mortgage payment is basic for many loan providers. On a monthly schedule, you make one home loan payment every month, resulting in 12 home loan payments each calendar year. When you pay your home mortgage on a biweekly schedule, however, you pay half of a home loan payment every 2 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 home mortgage payment may mean for your finances? Whether you're considering switching a current home loan to biweekly payments or exploring a brand-new home loan, it's a great concept to get a clear photo of your payment options. Use our biweekly mortgage calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you have not begun paying your home loan yet, this will be the overall loan quantity. If you have actually been paying your mortgage, go into the loan balance that remains. Interest rate: Enter the present rate of interest of your loan. Make certain to be precise down 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 30 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 outcomes. The biweekly mortgage calculator takes this information and generates two different computations:

Monthly mortgage payments: First, the biweekly home loan calculator tells you the details of what a month-to-month payment might appear like. It computes your regular monthly payment amount, the overall interest you'll pay over the lifetime of your loan, and the average interest you'll pay every month. Biweekly mortgage payments: Next, the biweekly home loan calculator offers the biweekly payment details. You'll see the biweekly mortgage payment amount, overall interest you'll pay over the life of the loan, and the average interest paid per period. 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 loan calculator shows a chart of your loan balance over time when using regular monthly payments (the black line) versus biweekly payments (the red location), listed here as the "Accelerated Balance".

You'll see that with biweekly home loan payments, your loan balance will reduce at a much faster 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 implies you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the distinction in between a month-to-month versus biweekly home loan payment schedule might appear very little, the extra month's mortgage payment each year makes a huge difference in the long run. Benefits of biweekly payments include:

Paying off the loan much faster: Because there's an extra loan payment every year, debtors who make biweekly payments settle their loans much quicker than regular monthly payment borrowers. Paying less general interest: Because the loan is settled faster, less principal loan balance stays to pay interest on. Over time, this leads to considerably less interest paid. The higher your interest rate, the more of a distinction paying biweekly can make in the amount of interest you pay. Building equity much faster: As you settle your home loan, the quantity you settled becomes your equity in your home. When you pay off your mortgage faster with biweekly payments, you'll construct equity faster. This can be found in convenient if you decide to sell your home before the loan is settled or if you desire to secure a home equity loan, home equity credit line, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some lenders also provide the choice to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, normally on the 1st and 15th. Much like making a month-to-month mortgage payment, this leads to 12 payments each year. The only distinction is that payments are made in half, two times each month.

Making bimonthly home loan payments can assist borrowers minimize the quantity of interest paid over the life of the loan. However, they do not have as huge of an impact as biweekly mortgage payments, which assist you settle your loan quicker, pay less interest in time, and build equity in your home much faster.

That said, bimonthly loan payments might be a great choice for some. People who earn money on a bimonthly schedule might find this payment schedule beneficial. Some may find that paying their loan immediately after getting their income works well for their capital and budgeting efforts. Others may just feel much better paying a smaller sized amount twice every month, rather than paying a swelling sum simultaneously.

Related Calculators

Interested in other tools to enhance your financial resources? We offer a variety of calculators to help you understand the monetary impacts of different types of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have multiple different loans with several various rates? Our mixed rate calculator averages these rates into a single rates of interest to help you better comprehend how much you're paying in interest. DSCR Calculator: Use this tool to quickly 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 range 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 specialist, use our bank declaration calculator to see what kind of mortgage 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 sensible choice based on your . Debt Consolidation Calculator: A debt consolidation loan rolls multiple financial obligations into a single payment, typically with a lower rate. See what a loan like this may appear like based upon your existing financial obligations. VA Loan Affordability Calculator: Estimate just how much home you can pay for when using a VA loan. Mortgage Payoff Calculator: See how altering your home loan payment impacts 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 rent vs purchase calculator can help you compare the brief- and long-lasting expenses involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we offer flexible financing choices and an unrivaled consumer experience. In addition to traditional home loan choices like conventional loans and VA loans, we likewise use a vast array of non-QM loans.

Wish to discover more about your home mortgage choices? Connect today and we can help you find a home loan that best aligns with your existing financial resources and long-term goals.

Find the best loan for you. Connect today!

Frequently Asked Questions

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

Finding the ideal payment schedule depends on your particular needs. Biweekly home loan payments might be a better option if:

You can afford to pay more cash each year: On a biweekly payment schedule, you'll be making one additional mortgage payment each year. It is necessary to determine whether there's space in your budget for this expense. You wish to pay your loan off more quickly: Depending on the regards to your loan, making biweekly payments will allow you to pay off your loan a lot more rapidly. Use our biweekly home mortgage calculator with extra payments to see how extra payments impact your loan term. You want to pay less interest: Because you settle your loan quicker with biweekly home mortgage payments, your loan will have less time to accrue interest and you'll pay less interest gradually. This can be specifically advantageous to those with a fairly high home mortgage rate.

What are the disadvantages of making biweekly mortgage payments?

The main drawback of biweekly home loan payments is the higher yearly expense. Because you make 26 half-payments throughout a year, or 13 full home loan payments, you'll make one extra loan payment annually. Depending on your loan and financials, the extra payment can be a significant concern to handle.

Sometimes, biweekly payments might come with additional costs. Some mortgage lending institutions charge an extra cost for biweekly payments or charge a penalty for loans that are paid off early. It's a good concept to research study whether switching to biweekly payments with your loan provider has any involved costs so that you can calculate the real cost of biweekly payments.

Does making biweekly payments decrease 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 accumulates as a percentage of your loan's remaining 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 difference 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 boutique mortgage lender focusing on providing 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is seen as an industry leader and specialist in property financing. Lyons has been featured in Forbes, Inc., Wall Street Journal, HousingWire, and more. As a member of the Mortgage Bankers Association, Lyons is able 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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