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 may be time to start making biweekly home mortgage payments.

A month-to-month home loan payment is basic for a lot of lending institutions. On a regular monthly schedule, you make one home loan payment monthly, resulting in 12 home mortgage payments each calendar year. When you pay your mortgage on a biweekly schedule, however, you pay half of a home mortgage payment every two weeks. Over the course of a year, this leads to 26 half payments or 13 complete home mortgage payments - one additional payment compared to a regular monthly schedule.

Curious what a biweekly home mortgage payment may imply for your finances? Whether you're thinking about changing a current mortgage to biweekly payments or checking out a new home loan, it's an excellent concept to get a clear photo of your payment choices. Use our biweekly home mortgage calculator to calculate the difference that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's easy to use the biweekly mortgage calculator. First, go into the following info:

Principal loan balance: If you haven't started paying your home mortgage yet, this will be the overall loan amount. If you have actually been paying your mortgage, get in the loan balance that stays.
Rate of interest: Enter the present rate of interest of your loan. Make sure to be specific down 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 been gone into, all that's left to do is press "Calculate".

Next, it's time to see your benefit results. The biweekly home loan calculator takes this information and generates two different estimations:

Monthly home loan payments: First, the biweekly home mortgage calculator tells you the information of what a month-to-month payment may appear like. It computes your month-to-month payment amount, the overall interest you'll pay over the lifetime of your loan, and the average interest you'll pay each month.
Biweekly mortgage payments: Next, the biweekly mortgage calculator offers the biweekly payment info. You'll see the biweekly home mortgage payment quantity, total interest you'll pay over the life of the loan, and the typical interest paid per duration. You'll notice that by making biweekly home loan payments, you can decrease the total amount of interest paid over the life of the loan.

Under the calculator results, the biweekly mortgage calculator displays a graph of your loan balance in time when using monthly payments (the black line) versus biweekly payments (the red location), noted here as the "Accelerated Balance".

You'll see that with biweekly home loan payments, your loan balance will decrease at a faster rate and you'll settle your loan in less time. The more quickly 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 difference between a month-to-month versus biweekly home mortgage payment schedule may seem minimal, the additional month's home mortgage payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Paying off the loan faster: Because there's an extra loan payment every year, borrowers who make biweekly payments settle their loans much faster than regular monthly payment debtors.
Paying less general interest: Because the loan is paid off faster, less primary loan balance stays to pay interest on. Gradually, this leads to substantially less interest paid. The higher your rate of interest, the more of a difference paying biweekly can make in the quantity of interest you pay.
Building equity much faster: As you settle your mortgage, the quantity you settled becomes your equity in your home. When you pay off your mortgage faster with biweekly payments, you'll construct equity faster. This comes in useful if you choose to sell your home before the loan is settled 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 offer the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments each month, typically on the 1st and 15th. Similar to making a regular monthly mortgage payment, this leads to 12 payments each year. The only distinction is that payments are made in half, twice per month.

Making bimonthly home loan payments can help borrowers decrease the quantity of interest paid over the life of the loan. However, they do not have as huge of an impact as biweekly mortgage payments, which help you pay off your loan quicker, pay less interest in time, and develop equity in your house much faster.

That stated, bimonthly loan payments might be a great choice for some. People who get paid on a bimonthly schedule might find this payment schedule favorable. Some may find that paying their loan instantly after getting their income works well for their capital and budgeting efforts. Others might simply feel better paying a smaller sized quantity twice monthly, instead of paying a lump amount all at as soon as.

Related Calculators

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

Blended Rate Calculator: Do you have several various loans with multiple various rates? Our combined rate calculator averages these rates into a single rates of interest to help you better understand just how much you're paying in interest.
DSCR Calculator: Use this tool to rapidly approximate 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 certify for special loans with a variety of advantages, like low loan rates, no deposit, and more. Use this calculator to identify what a VA mortgage 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 sort of mortgage you can receive using bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily purchasing down your interest rate is a sensible choice based on your financial resources.
Debt Consolidation Calculator: A financial obligation combination loan rolls numerous debts into a single payment, normally with a lower rate. See what a loan like this might look like based on your present 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 home loan payment effects your loan term and the quantity of interest paid with our mortgage benefit calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our lease vs purchase calculator can help you compare the short- and long-term expenses involved with both options.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile financing options and an unequaled client experience. In addition to traditional home mortgage options like traditional loans and VA loans, we likewise offer a wide variety of non-QM loans.

Wish to discover more about your home mortgage options? Connect today and we can help you find a mortgage that best aligns with your current financial resources and long-lasting objectives.

Find the best loan for you. Reach out today!

Frequently Asked Questions

Is it better to do monthly or biweekly mortgage payments?

Finding the right payment schedule depends on your particular requirements. Biweekly mortgage payments may be a much better option if:

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is necessary to determine whether there's space in your budget plan for this expense.
You wish to pay your loan off faster: Depending upon the regards to your loan, making biweekly payments will allow you to pay off your loan much more quickly. Use our biweekly mortgage calculator with additional 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 mortgage payments, your loan will have less time to accumulate interest and you'll pay less interest with time. This can be specifically helpful to those with a fairly high home mortgage rate.

What are the drawbacks of making biweekly mortgage payments?

The main downside of biweekly home loan payments is the higher annual 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 yearly. Depending on your loan and financials, the extra payment can be a significant concern to handle.

In some cases, biweekly payments might include additional expenses. Some mortgage loan providers charge an additional 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 real cost of biweekly payments.

Does making biweekly payments reduce 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 accumulates as a percentage of your loan's staying balance. Because biweekly payments lower your remaining balance at an accelerated speed, the interest on the balance will be less, too.

Use our mortgage calculator for biweekly payments to see the difference in overall 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 shop mortgage loan provider concentrating on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is viewed as an industry leader and expert in property 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 keep up with important modifications in the market to provide the most value to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.