What Is a Biweekly Mortgage Calculator?

Interested in paying your mortgage off faster and paying less interest over the life of your loan? It might be time to begin making biweekly home loan payments.

A monthly mortgage payment is basic for the majority of lenders. On a month-to-month schedule, you make one home loan payment each month, resulting in 12 mortgage payments each calendar year. When you pay your home mortgage on a biweekly schedule, nevertheless, you pay half of a home loan payment every 2 weeks. Over the course of a year, this results in 26 half payments or 13 full home mortgage payments - one extra payment compared to a regular monthly schedule.

Curious what a biweekly home loan payment may suggest for your finances? Whether you're thinking about switching an existing home loan to biweekly payments or exploring a brand-new home loan, it's an excellent concept to get a clear photo of your payment choices. Use our biweekly home mortgage calculator to calculate the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you have not begun paying your home mortgage yet, this will be the total loan quantity. If you have actually been paying your home loan, go into the loan balance that stays.
Rate of interest: Enter the current rates of interest of your loan. Make sure to be exact to the decimal point.
Loan term: The term of your loan is the number 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 info here.

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

Next, it's time to see your payoff outcomes. The biweekly home loan calculator takes this information and produces two different calculations:

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

Under the calculator results, the biweekly mortgage calculator shows a graph of your loan balance over time when making use of month-to-month payments (the black line) versus biweekly payments (the red area), noted 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 more quickly you pay off 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 between a month-to-month versus biweekly home loan payment schedule might seem very little, the additional month's home mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments consist of:

Settling the loan faster: Because there's an extra loan payment every year, debtors who make biweekly payments settle their loans much faster than monthly payment borrowers.
Paying less total interest: Because the loan is paid off faster, less principal loan balance remains to pay interest on. Gradually, this results in considerably 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 settle your home loan, the quantity you settled becomes your equity in your home. When you settle your home mortgage faster with biweekly payments, you'll develop equity much faster. This is available in convenient if you decide to offer your home before the loan is settled or if you wish to get a home equity loan, home equity line of credit, or cash-out refinance at some point.

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 every month, typically on the 1st and 15th. Similar to making a monthly home loan payment, this leads to 12 payments each year. The only difference is that payments are made in half, twice each month.

Making bimonthly home loan payments can assist debtors lower the quantity of interest paid over the life of the loan. However, they don't have as big of an effect as biweekly home loan payments, which assist you pay off your loan faster, pay less interest gradually, and develop equity in your house faster.

That said, bimonthly loan payments may be an excellent choice for some. People who get paid on a bimonthly schedule might find this payment schedule favorable. Some may discover that paying their loan right away after receiving their paycheck works well for their capital and budgeting efforts. Others may just feel better paying a smaller amount twice every month, instead of paying a lump sum all at once.

Related Calculators

Interested in other tools to enhance your finances? We offer a series of calculators to assist you understand the financial effects of different kinds of loan payments, interest rates, and more:

Blended Rate Calculator: Do you have multiple different loans with several various rates? Our combined rate calculator averages these rates into a single rate of interest to help you much better understand how much you're paying in interest.
DSCR Calculator: Use this tool to rapidly 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 buyers receive unique loans with a variety of benefits, like low loan rates, no deposit, and more. Use this calculator to identify what a VA home mortgage may appear like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent professional, utilize our bank statement calculator to see what type of home mortgage you can receive utilizing bank declarations.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your rate of interest is a sensible choice based on your finances.
Debt Consolidation Calculator: A debt combination loan rolls several debts into a single payment, usually with a lower rate. See what a loan like this may appear like based on your current debts.
VA Loan Affordability Calculator: Estimate how much home you can pay for when using a VA loan.
Mortgage Payoff Calculator: See how changing your home mortgage payment impacts your loan term and the amount of interest paid with our home loan reward calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs purchase calculator can assist you compare the brief- and long-lasting expenses involved with both choices.

Explore Flexible Mortgage Options

At Griffin Funding, we use flexible lending options and an unequaled client experience. In addition to conventional mortgage options like standard loans and VA loans, we also offer a wide variety of non-QM loans.

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

Find the finest loan for you. Connect today!

Frequently Asked Questions

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

Finding the right payment schedule depends upon your specific requirements. Biweekly home loan payments might be a better choice if:

You can pay for to pay more cash each year: On a biweekly payment schedule, you'll be making one extra mortgage payment each year. It is essential to identify whether there's room in your spending plan for this cost.
You wish to pay your loan off faster: 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 loan calculator with extra payments to see how extra payments effect your loan term.
You desire to pay less interest: Because you settle your loan faster with biweekly home loan payments, your loan will have less time to accrue interest and you'll pay less interest over time. This can be especially useful to those with a relatively high home loan rate.

What are the downsides of making biweekly mortgage payments?

The primary disadvantage of biweekly home loan payments is the greater yearly expense. Because you make 26 half-payments over the course of a year, or 13 complete mortgage payments, you'll make one extra loan payment each year. Depending on your loan and financials, the additional payment can be a significant concern to handle.

In many cases, biweekly payments may come with additional expenses. Some home loan loan providers charge an additional charge for biweekly payments or charge a penalty for loans that are paid off early. It's a good idea to research whether switching to biweekly payments with your loan provider has any associated fees so that you can compute the true expense of biweekly payments.

Does making biweekly payments reduce the amount 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 accrues as a percentage of your loan's staying 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 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 loan provider 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 realty 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 stay up to date with crucial modifications in the market to provide the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has made the Inc.