What Is a Biweekly Mortgage Calculator?

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

A regular monthly mortgage payment is standard for the majority of lending institutions. On a monthly schedule, you make one home loan payment monthly, leading to 12 home mortgage payments each calendar year. When you pay your home loan on a biweekly schedule, however, you share of a mortgage payment every 2 weeks. Throughout a year, this results in 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 indicate for your financial resources? Whether you're thinking of changing an existing home loan 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 home loan calculator to compute the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to use the biweekly 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 total loan quantity. 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 certain to be exact down to the decimal point.
Loan term: The term of your loan is the variety of years till the loan is because of be settled. If you have a 30-year loan, your loan term is 30 years. Enter that information here.

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

Next, it's time to see your benefit outcomes. The biweekly home loan calculator takes this details and generates 2 different estimations:

Monthly home loan payments: First, the biweekly mortgage calculator tells you the information of what a monthly payment might look like. It determines your monthly payment quantity, the overall interest you'll pay over the lifetime of your loan, and the average interest you'll pay monthly.
Biweekly mortgage payments: Next, the biweekly home mortgage calculator supplies the biweekly payment information. You'll see the biweekly home mortgage 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 decrease the overall amount 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 over time when using regular monthly 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 much faster rate and you'll settle your loan in less time. The quicker you settle your loan, the less balance will stay that you need 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 in between a month-to-month versus biweekly home loan payment schedule might seem very little, the extra month's mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Paying off the loan much faster: Because there's an extra loan payment every year, customers who make biweekly payments settle their loans much faster than month-to-month payment customers.
Paying less overall interest: Because the loan is paid off much faster, less principal loan balance stays to pay interest on. Gradually, this results in significantly less interest paid. The greater your rates of interest, the more of a distinction paying biweekly can make in the amount of interest you pay.
Building equity much faster: As you settle your home mortgage, the amount you paid off becomes your equity in your house. When you settle your mortgage more rapidly with biweekly payments, you'll develop equity much faster. This comes in convenient if you decide to sell your home before the loan is paid off or if you wish to secure a home equity loan, home equity line of credit, or cash-out refinance at some time.

Biweekly vs. Bimonthly Payments

Some lenders likewise use the alternative to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments each month, usually on the first and 15th. Just like making a monthly mortgage 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 customers lower the amount 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 in time, and construct equity in your house quicker.

That said, bimonthly loan payments may be an excellent option for some. People who get paid on a bimonthly schedule may find this payment schedule favorable. Some might find that paying their loan immediately after getting their income works well for their cash circulation and budgeting efforts. Others may simply feel much better paying a smaller quantity twice every month, rather than paying a lump sum all at as soon as.

Related Calculators

Interested in other tools to enhance your finances? We provide a variety of calculators to assist you comprehend the financial effects of different types of loan payments, rates of interest, and more:

Blended Rate Calculator: Do you have numerous different loans with multiple different rates? Our combined rate calculator averages these rates into a single rate of interest to assist you better comprehend how much you're paying in interest.
DSCR Calculator: Use this tool to quickly approximate your debt service protection ratio, which is an essential metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home purchasers receive unique loans with a variety of benefits, like low loan rates, no down payment, and more. Use this calculator to determine what a VA home mortgage might look like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent contractor, use 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 momentarily buying down your interest rate is a sensible decision based on your finances.
Debt Consolidation Calculator: A debt consolidation loan rolls numerous debts into a single payment, usually with a lower rate. See what a loan like this may appear like based on your existing financial obligations.
VA Loan Affordability Calculator: Estimate how much home you can manage when using a VA loan.
Mortgage Payoff Calculator: See how altering your mortgage payment impacts your loan term and the quantity of interest paid with our home mortgage payoff calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs buy calculator can assist you compare the short- and long-term expenses involved with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile lending alternatives and an unmatched customer experience. In addition to standard mortgage alternatives like conventional loans and VA loans, we likewise provide a large range of non-QM loans.

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

Find the best loan for you. Connect today!

Frequently Asked Questions

Is it better to do monthly or biweekly home loan payments?

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

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

What are the drawbacks of making biweekly mortgage payments?

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

Sometimes, biweekly payments may come with additional expenses. Some home loan lenders charge an extra cost for biweekly payments or charge a penalty for loans that are paid off early. It's a great idea to research study whether switching to biweekly payments with your lending institution has any involved charges so that you can calculate the true cost of biweekly payments.

Does making biweekly payments lower the quantity of interest I pay?

Yes. By switching 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 remaining balance. Because biweekly payments lower your remaining balance at a sped up 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 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 nationwide store mortgage lending institution focusing on providing 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as a market leader and expert in property financing. Lyons has been featured 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 important changes in the market to provide the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has made the Inc.