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 begin making biweekly mortgage payments.

A regular monthly mortgage payment is standard for a lot of lending institutions. On a regular monthly schedule, you make one mortgage payment monthly, resulting in 12 mortgage payments each fiscal year. When you pay your home mortgage on a biweekly schedule, however, you pay half of a home mortgage payment every 2 weeks. Throughout a year, this leads to 26 half payments or 13 complete home loan payments - one extra payment compared to a regular monthly schedule.

Curious what a biweekly home loan payment may suggest for your financial resources? Whether you're considering changing a current home loan to biweekly payments or exploring a brand-new home loan, it's an excellent idea to get a clear image of your payment alternatives. Use our biweekly home loan calculator to determine the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

It's simple to utilize the biweekly mortgage calculator. First, enter the following information:

Principal loan balance: If you have not begun paying your home loan yet, this will be the overall loan amount. If you've been paying your home mortgage, go into the loan balance that remains.
Rates of interest: Enter the current rates of interest of your loan. Make certain to be specific down to the decimal point.
Loan term: The term of your loan is the number of years up until 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 details has been gotten in, all that's left to do is press "Calculate".

Next, it's time to see your benefit outcomes. The biweekly mortgage calculator takes this details and creates 2 various calculations:

Monthly mortgage payments: First, the biweekly home loan calculator informs you the details of what a regular monthly payment may appear like. It calculates your month-to-month payment quantity, the total interest you'll pay over the lifetime of your loan, and the typical interest you'll pay each month.
Biweekly mortgage payments: Next, the biweekly home mortgage calculator offers the biweekly payment information. You'll see the biweekly home loan payment amount, total interest you'll pay over the life of the loan, and the typical interest paid per period. 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 chart of your loan balance gradually when utilizing 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 reduce at a much faster rate and you'll settle your loan in less time. The more quickly you pay off your loan, the less balance will stay that you need to pay interest on. That indicates you'll pay less in interest over the life of your loan.

Benefits of Biweekly Payments

While the difference between a regular monthly versus biweekly mortgage payment schedule might appear minimal, the additional month's home loan payment each year makes a huge distinction in the long run. Benefits of biweekly payments include:

Settling the loan much faster: Because there's an extra loan payment every year, debtors who make biweekly payments pay off their loans much faster than month-to-month payment customers.
Paying less total interest: Because the loan is paid off faster, less primary loan balance stays to pay interest on. With time, this results in considerably less interest paid. The higher your interest rate, the more of a difference paying biweekly can make in the quantity of interest you pay.
Building equity quicker: As you settle your home loan, the amount you settled becomes your equity in your home. When you settle your home loan faster with biweekly payments, you'll construct equity much faster. This comes in helpful if you decide to offer your home before the loan is paid off or if you wish to secure a home equity loan, home equity credit line, or cash-out re-finance at some time.

Biweekly vs. Bimonthly Payments

Some loan providers likewise offer the choice to pay a loan bimonthly. Borrowers who do so will share of their loan payments monthly, generally on the first and 15th. Much like making a month-to-month home loan payment, this results in 12 payments each year. The only difference is that payments are made in half, twice monthly.

Making bimonthly home mortgage payments can help 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 home mortgage payments, which assist you pay off your loan much faster, pay less interest gradually, and develop equity in your house quicker.

That stated, bimonthly loan payments may be an excellent alternative for some. People who earn money on a bimonthly schedule might discover this payment schedule beneficial. Some may discover that paying their loan immediately after receiving their paycheck works well for their capital and budgeting efforts. Others might merely feel better paying a smaller amount two times monthly, instead of paying a lump sum at one time.

Related Calculators

Interested in other tools to enhance your financial resources? We provide a variety of calculators to assist you understand the monetary impacts of different types of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have multiple various loans with multiple various rates? Our combined rate calculator averages these rates into a single rates of interest to assist you much better comprehend how much you're paying in interest.
DSCR Calculator: Use this tool to quickly estimate your debt service protection ratio, which is a key metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers get approved for unique loans with a variety of advantages, like low loan rates, no deposit, 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 specialist, utilize our bank statement calculator to see what sort of mortgage you can qualify for using bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if temporarily buying down your rates of interest is a sensible decision based upon your financial resources.
Debt Consolidation Calculator: A financial obligation consolidation loan rolls several debts into a single payment, normally with a lower rate. See what a loan like this might appear like based on your present financial obligations.
VA Loan Affordability Calculator: Estimate how much home you can afford when using a VA loan.
Mortgage Payoff Calculator: See how altering your mortgage payment impacts your loan term and the amount of interest paid with our mortgage payoff calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs purchase calculator can assist you compare the short- and long-term costs involved with both choices.

Explore Flexible Mortgage Options

At Griffin Funding, we offer versatile financing options and an unmatched consumer experience. In addition to traditional mortgage choices like standard loans and VA loans, we also use a large variety of non-QM loans.

Wish to discover more about your mortgage alternatives? Reach out today and we can assist you discover a home loan that best lines up with your present financial resources and long-term objectives.

Find the best loan for you. Connect today!

Frequently Asked Questions

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

Finding the ideal payment schedule depends on your particular needs. Biweekly home loan payments might be a better choice if:

You can afford to pay more money each year: On a biweekly payment schedule, you'll be making one extra mortgage payment each year. It's essential to determine whether there's room in your spending plan for this cost.
You wish to pay your loan off quicker: Depending upon the terms of your loan, making biweekly payments will enable you to pay off your loan much more rapidly. Use our biweekly mortgage calculator with additional payments to see how additional payments impact your loan term.
You wish to pay less interest: Because you pay off your loan quicker with biweekly home mortgage payments, your loan will have less time to accrue interest and you'll pay less interest gradually. This can be particularly beneficial to those with a reasonably high home mortgage rate.

What are the disadvantages of making biweekly home loan payments?

The primary downside of biweekly mortgage payments is the higher yearly cost. Because you make 26 half-payments over the course of a year, or 13 complete home mortgage payments, you'll make one extra loan payment annually. Depending upon your loan and financials, the additional payment can be a substantial problem to handle.

In many cases, biweekly payments might feature additional costs. Some home mortgage lenders charge an extra charge for biweekly payments or charge a charge for loans that are settled early. It's a good concept to research whether switching to biweekly payments with your lending institution has any involved charges so that you can calculate the true expense 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 remaining balance. Because biweekly payments lower your remaining balance at a sped up 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 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 nationwide boutique mortgage lender focusing on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage organization. Lyons is seen as a market leader and specialist 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 is able to stay up to date with crucial changes in the market to provide the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.