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 start making biweekly mortgage payments.

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

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

How Does the Biweekly Mortgage Calculator Work?

It's easy to utilize the biweekly home loan calculator. First, get in the following information:

Principal loan balance: If you have not begun paying your home mortgage yet, this will be the total loan amount. If you have actually been paying your mortgage, get in the loan balance that remains.
Interest rate: Enter the current rate of interest of your loan. Make sure to be precise to the decimal point.
Loan term: The regard to your loan is the number of years up until the loan is due to be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that details here.

Once this details has actually been gotten in, all that's delegated do is press "Calculate".

Next, it's time to see your payoff results. The biweekly mortgage calculator takes this info and creates two various computations:

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

Under the calculator results, the biweekly home mortgage calculator shows a chart of your loan balance gradually when using month-to-month 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 faster rate and you'll settle your loan in less time. The faster you pay off your loan, the less balance will remain that you require to pay interest on. That indicates you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the distinction in between a month-to-month versus biweekly home mortgage payment schedule may appear minimal, the additional month's home loan payment each year makes a big distinction in the long run. Benefits of biweekly payments consist of:

Settling the loan much faster: Because there's an additional loan payment every year, customers who make biweekly payments pay off their loans much quicker than monthly payment borrowers.
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 substantially 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 quicker: As you settle your mortgage, the quantity you paid off becomes your equity in your home. When you settle your home mortgage faster with biweekly payments, you'll construct equity much faster. This is available in handy if you choose to sell your home before the loan is paid off or if you wish to get a home equity loan, home equity line of credit, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

Some lending institutions likewise provide the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, usually on the 1st and 15th. Much like making a month-to-month home loan payment, this results in 12 payments each year. The only distinction is that payments are made in half, twice monthly.

Making bimonthly home loan payments can assist debtors 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 assist you pay off your loan much faster, pay less interest gradually, and construct equity in your house quicker.

That said, bimonthly loan payments may be a good alternative for some. People who make money on a bimonthly schedule may discover this payment schedule favorable. Some might find that paying their loan immediately after receiving their paycheck works well for their capital and budgeting efforts. Others may simply feel better paying a smaller sized amount two times each month, rather than paying a lump sum all at once.

Related Calculators

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

Blended Rate Calculator: Do you have several different loans with multiple different rates? Our blended rate calculator averages these rates into a single rate of interest to assist you much better comprehend how much you're paying in interest.
DSCR Calculator: Use this tool to rapidly approximate your financial obligation service coverage ratio, which is a key metric in identifying your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers certify for unique loans with a variety of advantages, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home mortgage 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 type of home loan you can receive using bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your rates of interest is a wise choice based on your financial resources.
Debt Consolidation Calculator: A debt combination loan rolls numerous debts into a single payment, normally 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 pay for when using a VA loan.
Mortgage Payoff Calculator: See how altering your home loan payment effects your loan term and the quantity of interest paid with our mortgage reward calculator.
Rent vs Buy Calculator: Unsure about whether you should lease or buy? Our lease vs buy calculator can assist you compare the short- and long-lasting expenses included with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile lending options and an unmatched consumer experience. In addition to traditional home loan choices like traditional loans and VA loans, we also provide a vast array of non-QM loans.

Wish to discover more about your home mortgage alternatives? Reach out today and we can help you discover a home loan that finest lines up with your existing financial resources and long-lasting goals.

Find the finest loan for you. Reach out today!

Frequently Asked Questions

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

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

You can pay for to pay more cash each year: On a biweekly payment schedule, you'll be making one additional home mortgage payment each year. It's crucial to determine whether there's space in your budget for this expense.
You want to pay your loan off more rapidly: Depending on the terms of your loan, making biweekly payments will allow you to pay off your loan far more rapidly. Use our biweekly mortgage calculator with additional payments to see how extra payments impact your loan term.
You desire to pay less interest: Because you settle your loan more rapidly with biweekly home mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest with time. This can be especially useful to those with a fairly high home loan rate.

What are the drawbacks of making biweekly mortgage payments?

The primary drawback of biweekly home mortgage 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 yearly. Depending upon your loan and financials, the extra payment can be a considerable problem to handle.

Sometimes, biweekly payments might come with extra costs. Some mortgage lenders charge an extra cost for biweekly payments or charge a charge for loans that are paid off early. It's a good concept to research whether switching to biweekly payments with your loan provider has any associated costs so that you can compute the true cost of biweekly payments.

Does making biweekly payments decrease 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 portion of your loan's staying 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 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 delivering 5-star service to its customers. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is viewed as a market leader and specialist in genuine estate 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 stay up to date with essential modifications in the industry to deliver the most worth to Griffin's customers. Under Lyons' management, Griffin Funding has actually made the Inc.