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 may be time to start making biweekly mortgage payments.

A regular monthly home loan payment is standard for many lending institutions. On a month-to-month schedule, you make one home mortgage payment every month, leading to 12 mortgage payments each fiscal year. When you pay your home loan on a biweekly schedule, nevertheless, you pay half of a mortgage payment every two weeks. Over the course of 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 home mortgage payment may indicate for your financial resources? Whether you're thinking of changing a current mortgage to biweekly payments or exploring a brand-new home loan, it's an excellent idea to get a clear photo of your payment options. Use our biweekly mortgage calculator to calculate the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly home loan calculator. First, enter the following details:

Principal loan balance: If you haven't begun paying your home loan yet, this will be the total loan amount. If you've been paying your home mortgage, enter the loan balance that stays.
Interest rate: Enter the existing interest rate of your loan. Make certain to be specific down to the decimal point.
Loan term: The regard to your loan is the number of years till the loan is due to be settled. If you have a 30-year loan, your loan term is 30 years. Enter that details here.

Once this info has been entered, all that's left to do is press "Calculate".

Next, it's time to see your reward results. The biweekly home mortgage calculator takes this information and produces 2 different estimations:

Monthly home mortgage payments: First, the biweekly home mortgage calculator informs you the information of what a month-to-month payment may look like. It determines your month-to-month payment amount, the overall interest you'll pay over the life time of your loan, and the average interest you'll pay every month.
Biweekly home loan payments: Next, the biweekly mortgage calculator offers the biweekly payment details. You'll see the biweekly mortgage payment quantity, overall interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll see 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 mortgage calculator displays a graph of your loan balance with time when using regular monthly payments (the black line) versus biweekly payments (the red area), listed here as the "Accelerated Balance".

You'll see that with biweekly mortgage payments, your loan balance will reduce at a quicker rate and you'll pay off your loan in less time. The faster you settle your loan, the less balance will stay that you need 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 in between a monthly versus biweekly home mortgage payment schedule may seem 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 quicker: Because there's an extra loan payment every year, borrowers who make biweekly payments settle their loans much quicker than month-to-month payment debtors.
Paying less general interest: Because the loan is settled quicker, less principal loan balance stays to pay interest on. Gradually, this leads to significantly less interest paid. The higher your rates of interest, the more of a difference paying biweekly can make in the quantity of interest you pay.
Building equity faster: As you settle your home loan, the amount you settled becomes your equity in your house. When you pay off your home mortgage faster with biweekly payments, you'll develop equity faster. This is available in useful if you choose 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 re-finance at some point.

Biweekly vs. Bimonthly Payments

Some lenders also use the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, usually on the first and 15th. Similar to making a monthly home mortgage payment, this leads to 12 payments each year. The only difference is that payments are made in half, two times each month.

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

That stated, bimonthly loan payments might be a great alternative for some. People who get paid on a bimonthly schedule may discover this payment schedule favorable. Some might find that paying their loan instantly after receiving their paycheck works well for their cash circulation and budgeting efforts. Others might just feel better paying a smaller amount twice monthly, instead of paying a swelling sum simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have multiple various loans with several various rates? Our blended rate calculator averages these rates into a single rate of interest to assist you much better understand how much you're paying in interest.
DSCR Calculator: Use this tool to quickly approximate your financial obligation service protection ratio, which is a key metric in identifying your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home purchasers qualify for special loans with a series of advantages, like low loan rates, no deposit, and more. Use this calculator to determine what a VA home loan may appear like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent specialist, utilize our bank declaration calculator to see what kind 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 sensible decision based upon your financial resources.
Debt Consolidation Calculator: A debt combination loan rolls numerous debts into a single payment, typically with a lower rate. See what a loan like this may appear like based on your existing debts.
VA Loan Affordability Calculator: Estimate just how much home you can afford when using a VA loan.
Mortgage Payoff Calculator: See how altering your home mortgage payment impacts your loan term and the quantity of interest paid with our home mortgage reward calculator.
Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our lease vs buy calculator can assist you compare the short- and long-lasting costs involved with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we use versatile financing alternatives and an unequaled consumer experience. In addition to traditional mortgage choices like conventional loans and VA loans, we likewise offer a large range of non-QM loans.

Wish to find out more about your mortgage choices? Reach out today and we can help you find a home mortgage that finest lines up with your current finances and long-term objectives.

Find the finest loan for you. Reach out today!

Frequently Asked Questions

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

Finding the right payment schedule depends upon your particular needs. Biweekly mortgage payments may be a much better choice if:

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

What are the drawbacks of making biweekly home loan payments?

The main disadvantage of biweekly home mortgage payments is the greater yearly cost. Because you make 26 half-payments throughout a year, or 13 complete home loan payments, you'll make one additional loan payment annually. Depending on your loan and financials, the extra payment can be a considerable concern to take on.

Sometimes, biweekly payments may feature extra costs. Some home mortgage lenders charge an extra charge for biweekly payments or charge a penalty for loans that are settled early. It's an excellent idea to research whether changing to biweekly payments with your lender has any associated fees so that you can determine the real cost of biweekly payments.

Does making biweekly payments reduce 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 portion of your loan's staying balance. Because biweekly payments lower your staying balance at an accelerated pace, 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 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 boutique mortgage loan provider concentrating on providing 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is seen as a market leader and expert in realty finance. Lyons has been included 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 crucial modifications in the industry to deliver the most worth to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.