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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 might be time to begin making biweekly mortgage payments.

A monthly home loan payment is standard for a lot of loan providers. On a regular monthly schedule, you make one home loan payment every month, leading to 12 mortgage payments each calendar year. When you pay your home loan on a biweekly schedule, nevertheless, you share of a home loan payment every two weeks. Throughout a year, this leads to 26 half payments or 13 complete home mortgage payments - one extra payment compared to a month-to-month schedule.

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

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you have not begun paying your home loan yet, this will be the overall loan amount. If you have actually been paying your mortgage, enter the loan balance that remains. Rates of interest: Enter the current rate of interest of your loan. Make sure to be specific to the decimal point. Loan term: The regard to your loan is the variety of years until the loan is because of be settled. If you have a 30-year loan, your loan term is thirty years. Enter that info here.

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

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

Monthly mortgage payments: First, the biweekly home loan calculator informs you the information of what a regular monthly payment might look like. It computes your monthly payment quantity, the overall interest you'll pay over the life time of your loan, and the average interest you'll pay each month. Biweekly home loan payments: Next, the biweekly home mortgage calculator offers the biweekly payment information. You'll see the biweekly mortgage payment amount, total interest you'll pay over the life of the loan, and the average interest paid per duration. You'll observe that by making biweekly home loan payments, you can reduce 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 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 decrease at a faster rate and you'll pay off your loan in less time. The more rapidly you pay off your loan, the less balance will remain 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 difference in between a regular monthly versus biweekly mortgage payment schedule may appear very little, the extra month's home loan payment each year makes a big distinction in the long run. Benefits of biweekly payments include:

Paying off the loan faster: Because there's an additional loan payment every year, debtors who make biweekly payments settle their loans much quicker than regular monthly payment borrowers. Paying less total interest: Because the loan is settled faster, less principal loan balance remains to pay interest on. With time, this leads to substantially less interest paid. The greater your interest rate, the more of a difference paying biweekly can make in the amount of interest you pay. Building equity faster: As you settle your mortgage, the amount you paid off becomes your equity in your home. When you pay off your home mortgage faster with biweekly payments, you'll construct equity quicker. This comes in useful if you decide to sell your home before the loan is settled or if you wish to secure a home equity loan, home equity credit line, or cash-out refinance eventually.

Biweekly vs. Bimonthly Payments

Some loan providers also use the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments monthly, generally on the 1st and 15th. Much like making a regular monthly mortgage payment, this leads to 12 payments each year. The only distinction is that payments are made in half, two times per month.

Making bimonthly home mortgage payments can assist debtors lower the quantity 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 help you pay off your loan faster, pay less interest in time, and build equity in your home much faster.

That said, bimonthly loan payments may be a good option for some. People who get paid on a bimonthly schedule may find this payment schedule favorable. Some may find that paying their loan instantly after getting their income works well for their money circulation and budgeting efforts. Others might just feel much better paying a smaller sized quantity twice each month, instead of paying a lump sum simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have numerous various loans with several different rates? Our combined rate calculator averages these rates into a single rate of interest to help you better comprehend how much you're paying in interest. DSCR Calculator: Use this tool to quickly estimate your financial obligation service protection ratio, which is an essential metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home purchasers qualify for unique loans with a series of benefits, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home loan may look like for you. Bank Statement Loan Calculator: If you're self-employed or an independent contractor, utilize our bank declaration calculator to see what sort of home mortgage you can get approved for utilizing bank statements. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your interest rate is a wise choice based upon your finances. Debt Consolidation Calculator: A debt combination loan rolls numerous debts into a single payment, generally with a lower rate. See what a loan like this might appear like based upon your present financial obligations. VA Loan Affordability Calculator: Estimate how much home you can pay for when using a VA loan. Mortgage Payoff Calculator: See how changing your mortgage payment impacts your loan term and the quantity of interest paid with our home mortgage benefit calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our lease vs buy calculator can help you compare the brief- and long-term costs involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide flexible lending options and an unequaled consumer experience. In addition to standard home mortgage choices like traditional loans and VA loans, we also offer a large range of non-QM loans.

Want to find out more about your home mortgage choices? Connect today and we can assist you find a mortgage that finest aligns with your present financial resources and long-lasting goals.

Find the very best loan for you. Reach out today!

Frequently Asked Questions

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

Finding the best payment schedule depends upon your particular requirements. Biweekly home might be a better option if:

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

What are the disadvantages of making biweekly home loan payments?

The primary disadvantage of biweekly home mortgage payments is the higher yearly expense. 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 each year. Depending upon your loan and financials, the extra payment can be a considerable burden to handle.

In many cases, biweekly payments may feature additional costs. Some mortgage loan providers charge an extra fee for biweekly payments or charge a penalty for loans that are settled early. It's a good concept to research whether changing to biweekly payments with your loan provider has any associated charges so that you can calculate the real cost of biweekly payments.

Does making biweekly payments decrease the quantity 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 accumulates 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.
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Bill Lyons is the Founder, CEO & President of Griffin Funding. Founded in 2013, Griffin Funding is a national shop mortgage lender focusing on delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is viewed as an industry leader and professional in real estate 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 essential modifications in the industry to deliver the most value to Griffin's customers. Under Lyons' leadership, Griffin Funding has made the Inc.
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