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

Curious what a biweekly home mortgage payment may indicate for your financial resources? Whether you're thinking about switching a current home mortgage to biweekly payments or exploring a brand-new home loan, it's a good idea to get a clear image of your payment choices. Use our biweekly mortgage calculator to compute 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 information:

Principal loan balance: If you haven't started paying your mortgage 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 existing rate of interest of your loan. Make certain to be exact down to the decimal point.
Loan term: The term of your loan is the variety of years till the loan is because of be settled. If you have a 30-year loan, your loan term is 30 years. Enter that details here.

Once this information has actually been entered, all that's delegated do is press "Calculate".

Next, it's time to see your reward outcomes. The biweekly home mortgage calculator takes this info and creates 2 various computations:

Monthly home loan payments: First, the biweekly home loan calculator tells you the information of what a monthly payment may look like. It computes your regular monthly payment quantity, the overall interest you'll pay over the life time of your loan, and the average interest you'll pay every month.
Biweekly mortgage payments: Next, the biweekly home mortgage calculator provides the biweekly payment info. You'll see the biweekly home mortgage payment quantity, total interest you'll pay over the life of the loan, and the typical interest paid per period. You'll observe that by making biweekly home loan payments, you can reduce the overall amount of interest paid over the life of the loan.

Under the calculator results, the biweekly home mortgage calculator shows a graph of your loan balance with time when making use of regular 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 settle your loan in less time. The quicker you settle your loan, the less balance will stay that you need to pay interest on. That implies you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the difference between a monthly versus biweekly home mortgage payment schedule may appear very little, the extra month's mortgage payment each year makes a big difference in the long run. Benefits of biweekly payments include:

Settling the loan much faster: Because there's an additional loan payment every year, borrowers who make biweekly payments settle their loans much faster than month-to-month payment debtors.
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 significantly less interest paid. The greater your interest rate, the more of a distinction paying biweekly can make in the amount of interest you pay.
Building equity quicker: As you pay off your mortgage, the amount you settled becomes your equity in your home. When you settle your mortgage quicker with biweekly payments, you'll construct equity faster. This can be found in handy if you choose to offer your home before the loan is paid off or if you wish to secure a home equity loan, home equity credit line, or cash-out refinance eventually.

Biweekly vs. Bimonthly Payments

Some lending institutions also use the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, usually on the 1st and 15th. Similar to making a monthly home mortgage payment, this leads to 12 payments each year. The only distinction is that payments are made in half, two times monthly.

Making bimonthly mortgage payments can assist customers reduce the amount of interest paid over the life of the loan. However, they don't have as big of an effect as biweekly home mortgage payments, which help you pay off your loan much faster, pay less interest with time, and construct equity in your home much faster.

That said, bimonthly loan payments may be a good option for some. People who make money on a bimonthly schedule may discover this payment schedule beneficial. Some might find that paying their loan right away after getting their income works well for their capital and budgeting efforts. Others may merely feel better paying a smaller amount two times every month, instead of paying a lump sum simultaneously.

Related Calculators

Interested in other tools to enhance your finances? We use a range of calculators to help you understand the monetary impacts of various types of loan payments, interest rates, and more:

Blended Rate Calculator: Do you have several different loans with numerous various rates? Our blended rate calculator averages these rates into a single interest rate to assist you much better comprehend how much you're paying in interest.
DSCR Calculator: Use this tool to quickly estimate your debt service coverage ratio, which is a crucial metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers certify for special loans with a variety of advantages, like low loan rates, no down payment, 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 purchasing down your interest rate is a wise decision based upon your financial resources.
Debt Consolidation Calculator: A debt consolidation loan rolls several financial obligations into a single payment, generally with a lower rate. See what a loan like this might appear like based upon your current financial obligations.
VA Loan Affordability Calculator: Estimate how much home you can afford when utilizing 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 buy? Our lease vs buy calculator can assist you compare the brief- and long-lasting costs involved with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we use flexible financing options and an unequaled customer experience. In addition to standard mortgage options like conventional loans and VA loans, we also use a large range of non-QM loans.

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

Find the finest loan for you. Reach out today!

Frequently Asked Questions

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

Finding the ideal payment schedule depends upon your particular needs. Biweekly home mortgage payments may be a better option if:

You can pay for to pay more money each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is essential 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 regards to your loan, making biweekly payments will enable you to settle your loan a lot 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 rapidly with biweekly home mortgage payments, your loan will have less time to accrue interest and you'll pay less interest with time. This can be specifically beneficial to those with a fairly high home mortgage rate.

What are the drawbacks of making biweekly home mortgage payments?

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

In some cases, biweekly payments may feature extra costs. Some home loan lenders charge an extra charge for biweekly payments or charge a charge for loans that are settled early. It's an excellent concept to research whether switching to biweekly payments with your lending institution has any associated fees so that you can compute the true cost of biweekly payments.

Does making biweekly payments lower the quantity 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 percentage of your loan's staying balance. Because biweekly payments lower your remaining balance at an accelerated rate, 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 month-to-month 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 store mortgage loan provider focusing on delivering 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 expert in property 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 market to deliver the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.