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 loan payments.

A monthly mortgage payment is basic for a lot of loan providers. On a regular monthly schedule, you make one home mortgage payment every month, leading to 12 home loan payments each fiscal year. When you pay your home 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 additional payment compared to a regular monthly schedule.

Curious what a biweekly home mortgage payment may mean for your financial resources? Whether you're believing about changing an existing home mortgage to biweekly payments or checking out a brand-new home loan, it's a great concept to get a clear photo of your payment choices. Use our biweekly home mortgage calculator to calculate the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to use the biweekly home mortgage calculator. First, go into the following details:

Principal loan balance: If you haven't begun paying your mortgage yet, this will be the overall loan amount. If you've been paying your mortgage, go into the loan balance that remains. Interest rate: Enter the existing interest rate of your loan. Make sure to be exact down to the decimal point. Loan term: The term of your loan is the number of years until the loan is due to 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 entered, all that's left to do is press "Calculate".

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

Monthly mortgage payments: First, the biweekly home loan calculator tells you the details of what a monthly payment may look like. It determines your monthly payment amount, the overall 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 home mortgage calculator offers the biweekly payment info. You'll see the biweekly mortgage payment quantity, overall interest you'll pay over the life of the loan, and the average interest paid per duration. You'll see that by making biweekly mortgage payments, you can decrease the total 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 over time when utilizing monthly payments (the black line) versus biweekly payments (the red location), noted here as the "Accelerated Balance".

You'll see that with biweekly mortgage payments, your loan balance will decrease at a much faster rate and you'll pay off your loan in less time. The quicker you settle your loan, the less balance will remain 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 mortgage payment schedule might seem minimal, the additional month's home loan payment each year makes a big difference in the long run. Benefits of biweekly payments consist of:

Settling the loan much faster: Because there's an additional loan payment every year, debtors who make biweekly payments settle their loans much quicker 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. Over time, this results in 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 faster: As you settle your mortgage, the quantity you becomes your equity in your home. When you pay off your home loan faster with biweekly payments, you'll build equity faster. This comes in handy if you choose to offer your home before the loan is settled or if you want 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 also provide the option to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, generally on the 1st and 15th. Similar to making a month-to-month home loan payment, this results in 12 payments each year. The only difference is that payments are made in half, twice monthly.

Making bimonthly home loan payments can help borrowers lower the amount of interest paid over the life of the loan. However, they don't have as huge of an effect as biweekly home mortgage payments, which assist you settle your loan faster, pay less interest gradually, and develop equity in your home faster.

That stated, bimonthly loan payments might be a good option for some. People who get paid on a bimonthly schedule may discover this payment schedule favorable. Some might find that paying their loan immediately after getting their paycheck works well for their capital and budgeting efforts. Others might merely feel much better paying a smaller amount twice monthly, instead of paying a lump amount simultaneously.

Related Calculators

Interested in other tools to improve your finances? We provide a variety of calculators to help you understand the financial impacts of different kinds of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have multiple various loans with multiple different rates? Our combined rate calculator averages these rates into a single interest rate to help you much 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 qualify for unique loans with a variety 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 contractor, use our bank declaration calculator to see what type of home mortgage you can certify for 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 choice based upon your finances. Debt Consolidation Calculator: A debt consolidation loan rolls multiple debts into a single payment, normally with a lower rate. See what a loan like this may look like based on 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 changing your home loan payment effects your loan term and the quantity of interest paid with our home loan reward calculator. Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our rent vs purchase calculator can assist you compare the brief- and long-term expenses included with both choices.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible lending alternatives and an unequaled client experience. In addition to standard home loan alternatives like standard loans and VA loans, we also use a vast array of non-QM loans.

Wish to discover more about your mortgage options? Connect today and we can assist you discover a home loan that best aligns with your present finances and long-term goals.

Find the very best loan for you. Connect today!

Frequently Asked Questions

Is it better to do month-to-month or biweekly mortgage payments?

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

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is very important to figure out whether there's room in your spending plan for this expense. You desire to pay your loan off faster: Depending upon the regards to your loan, making biweekly payments will allow you to settle your loan much more rapidly. Use our biweekly home mortgage calculator with extra payments to see how additional payments effect your loan term. You wish to pay less interest: Because you settle your loan more quickly with biweekly home mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest gradually. This can be specifically useful to those with a relatively high home loan rate.

What are the disadvantages of making biweekly mortgage payments?

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

In some cases, biweekly payments might feature additional costs. Some home mortgage lenders charge an extra charge for biweekly payments or charge a charge for loans that are paid off early. It's a good concept to research whether switching to biweekly payments with your loan provider has any associated charges so that you can calculate the real expense of biweekly payments.

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

Yes. By switching to a biweekly payment schedule, you'll pay much less interest over the regard to your loan. Interest accumulates as a portion of your loan's remaining balance. Because biweekly payments lower your staying balance at a sped up pace, 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 regular monthly vs a mortgage that's paid biweekly.
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Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a nationwide store mortgage lender concentrating on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as a market leader and expert in genuine estate financing. 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 changes in the market to deliver the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.
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