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What Is a Biweekly Mortgage Calculator?

Interested in paying your home mortgage off faster and paying less interest over the life of your loan? It might be time to begin making biweekly home loan payments.
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A monthly home mortgage payment is basic for the majority of loan providers. On a month-to-month 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, nevertheless, you pay half of a home loan payment every two weeks. Throughout a year, this leads to 26 half payments or 13 full home mortgage payments - one extra payment compared to a monthly schedule.

Curious what a biweekly mortgage payment may indicate for your financial resources? Whether you're considering switching an existing home loan to biweekly payments or exploring a new home loan, it's an excellent idea to get a clear photo of your payment choices. Use our biweekly home mortgage calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly mortgage calculator. First, get in the following details:

Principal loan balance: If you haven't started paying your home mortgage yet, this will be the total loan quantity. If you have actually been paying your home loan, get in the loan balance that remains. Rate of interest: Enter the present rates of interest of your loan. Make certain to be specific down to the decimal point. Loan term: The term of your loan is the variety of years till the loan is because of be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that info here.

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

Next, it's time to see your reward outcomes. The biweekly home mortgage calculator takes this information and creates two different calculations:

Monthly home mortgage payments: First, the biweekly home loan calculator tells you the information of what a month-to-month payment might look like. It calculates your monthly payment quantity, the overall interest you'll pay over the life time of your loan, and the typical interest you'll pay each month. Biweekly home mortgage payments: Next, the biweekly mortgage calculator provides the biweekly payment details. You'll see the biweekly home loan payment amount, overall interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll observe that by making biweekly mortgage payments, you can lower the overall quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly home loan calculator shows a graph of your loan balance over time when using regular monthly 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 reduce at a much faster 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 need 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 in between a monthly versus biweekly mortgage payment schedule may seem very little, the additional month's home mortgage payment each year makes a big distinction in the long run. Benefits of biweekly payments consist of:

Paying off the loan faster: Because there's an additional loan payment every year, debtors who make biweekly payments settle their loans much faster than regular monthly payment debtors. Paying less total interest: Because the loan is paid off much faster, less principal loan balance stays to pay interest on. Gradually, this results in substantially less interest paid. The higher your rates of interest, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity quicker: As you pay off your home loan, the amount you paid off becomes your equity in your house. When you settle your home mortgage quicker with biweekly payments, you'll build equity much faster. This is available in convenient if you decide to offer your home before the loan is paid off or if you desire to take out a home equity loan, home equity credit line, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

Some lenders also use the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, generally on the 1st and 15th. Just like making a regular monthly mortgage payment, this results in 12 payments each year. The only difference is that payments are made in half, twice each month.

Making bimonthly home mortgage payments can assist borrowers lower the quantity of interest paid over the life of the loan. However, they do not have as big of an impact as biweekly mortgage payments, which help you pay off your loan much faster, pay less interest gradually, and construct equity in your home quicker.

That stated, bimonthly loan payments may be a great alternative for some. People who make money on a bimonthly schedule might find this payment schedule beneficial. Some might find that paying their loan right away after receiving their paycheck works well for their capital and budgeting efforts. Others might simply feel better paying a smaller amount twice monthly, instead of paying a lump sum at one time.

Related Calculators

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

Blended Rate Calculator: Do you have multiple various loans with numerous various rates? Our combined rate calculator averages these rates into a single interest rate to help you much better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly approximate your financial obligation service ratio, which is a key metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers get approved for unique loans with a variety of benefits, like low loan rates, no deposit, 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 type of home loan you can receive utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily purchasing down your interest rate is a smart decision based upon your finances. Debt Consolidation Calculator: A financial obligation combination loan rolls numerous debts into a single payment, typically with a lower rate. See what a loan like this may look like based on your existing financial obligations. 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 effects 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 buy? Our rent vs buy calculator can help you compare the brief- and long-term costs included with both options.

Explore Flexible Mortgage Options

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

Wish to discover more about your mortgage alternatives? Reach out today and we can help you find a home loan that finest aligns with your current finances and long-lasting goals.

Find the very best 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 specific requirements. Biweekly home loan payments may be a better choice if:

You can afford to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home mortgage payment each year. It is essential to figure out whether there's space in your budget plan for this cost. You wish to pay your loan off more rapidly: Depending upon the terms of your loan, making biweekly payments will enable you to settle your loan a lot more quickly. Use our biweekly home mortgage calculator with extra payments to see how extra payments impact your loan term. You wish to pay less interest: Because you settle your loan quicker 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 specifically helpful to those with a relatively high home loan rate.

What are the downsides of making biweekly 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 full home mortgage payments, you'll make one additional loan payment annually. Depending on your loan and financials, the additional payment can be a considerable burden to handle.

In many cases, biweekly payments might come with additional expenses. Some home loan loan providers charge an extra fee for biweekly payments or charge a penalty for loans that are paid off early. It's a good idea to research whether changing to biweekly payments with your lending institution has any involved fees so that you can determine 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 regard to your loan. Interest accumulates as a portion 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 distinction in total interest paid on a mortgage that's paid regular 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 shop mortgage lender concentrating on providing 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is seen as an industry leader and expert 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 is able to stay up to date with crucial changes in the market to deliver the most value to Griffin's customers. Under Lyons' management, Griffin Funding has actually made the Inc.
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