What Is a Biweekly Mortgage Calculator?

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

A monthly home loan payment is basic for most lenders. On a month-to-month schedule, you make one home loan payment monthly, leading to 12 home mortgage payments each fiscal year. When you pay your home loan on a biweekly schedule, however, you pay half of a mortgage payment every two weeks. Throughout a year, this leads to 26 half payments or 13 full mortgage payments - one extra payment compared to a month-to-month schedule.

Curious what a biweekly home mortgage payment may imply for your finances? Whether you're thinking of changing an existing home loan to biweekly payments or exploring a brand-new home mortgage, it's a great concept to get a clear image of your payment options. 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 utilize the biweekly home loan calculator. First, go into the following info:

Principal loan balance: If you have not begun paying your home loan yet, this will be the overall loan quantity. If you have actually been paying your home loan, go into the loan balance that remains. Rate of interest: Enter the existing interest rate 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 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 details has actually 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 details and creates 2 different calculations:

Monthly mortgage payments: First, the biweekly home loan calculator tells you the details of what a regular monthly payment may look like. It determines your monthly payment amount, the total interest you'll pay over the life time of your loan, and the average interest you'll pay monthly. Biweekly home loan payments: Next, the biweekly home mortgage calculator offers the biweekly payment info. You'll see the biweekly home mortgage payment quantity, overall interest you'll pay over the life of the loan, and the average interest paid per period. You'll notice that by making biweekly mortgage payments, you can lower the total quantity of interest paid over the life of the loan.

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

You'll see that with biweekly home mortgage payments, your loan balance will decrease at a much 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 require 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 mortgage payment schedule might seem minimal, the additional month's home loan payment each year makes a big distinction in the long run. Benefits of biweekly payments include:

Settling the loan faster: Because there's an extra loan payment every year, customers who make biweekly payments pay off their loans much faster than month-to-month payment borrowers. Paying less overall interest: Because the loan is settled faster, less primary loan balance stays to pay interest on. With time, this results in considerably less interest paid. The greater 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 home mortgage, the quantity you paid off becomes your equity in your house. When you settle your mortgage more quickly with biweekly payments, you'll construct equity quicker. This is available in useful if you choose to offer your home before the loan is settled or if you wish to get a home equity loan, home equity credit line, or cash-out re-finance eventually.

Biweekly vs. Bimonthly Payments

Some lending institutions also use the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments monthly, usually on the first and 15th. Much like making a regular monthly home loan payment, this leads to 12 payments each year. The only difference is that payments are made in half, twice per month.

Making bimonthly mortgage payments can assist customers decrease the quantity of interest paid over the life of the loan. However, they do not have as huge of an impact as biweekly home loan payments, which assist you settle your loan faster, pay less interest with time, and build equity in your home faster.

That said, bimonthly loan payments might be an excellent alternative for some. People who get paid on a bimonthly schedule might find 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 may simply feel better paying a smaller amount twice every month, instead of paying a lump amount at one time.

Related Calculators

Interested in other tools to improve your finances? We provide a series of calculators to assist you comprehend the monetary impacts of different types of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have multiple various loans with numerous various rates? Our blended rate calculator averages these rates into a single interest rate to assist you much better understand how much you're paying in interest. DSCR Calculator: Use this tool to rapidly approximate your debt service protection ratio, which is an essential metric in identifying your eligibility for a DSCR loan. VA Loan Calculator: Veteran home buyers receive unique loans with a variety of benefits, like low loan rates, no deposit, and more. Use this calculator to determine 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 type of home loan you can qualify for utilizing bank declarations. 2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily buying down your rates of interest is a wise choice based upon your finances. Debt Consolidation Calculator: A financial obligation consolidation loan rolls numerous debts into a single payment, generally with a lower rate. See what a loan like this may appear like based upon your present financial obligations. VA Loan Affordability Calculator: Estimate just 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 amount of interest paid with our mortgage reward calculator. Rent vs Buy Calculator: Unsure about whether you should rent or purchase? Our rent vs purchase calculator can assist you compare the brief- and long-term expenses included with both options.

Explore Flexible Mortgage Options

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

Want to find out more about your home mortgage choices? Connect today and we can help you find a home mortgage that best lines up with your existing finances and long-lasting objectives.

Find the best loan for you. Reach out today!
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Frequently Asked Questions
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Is it much better to do regular monthly or biweekly home loan payments?

Finding the best payment schedule depends on your specific needs. Biweekly home loan payments may be a better choice 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 is necessary to identify whether there's space in your spending plan for this cost. You wish to pay your loan off more rapidly: Depending on the terms of your loan, making biweekly payments will allow you to settle your loan a lot more quickly. 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 settle your loan quicker with biweekly home loan payments, your loan will have less time to accumulate interest and you'll pay less interest in time. This can be particularly beneficial to those with a fairly high home loan rate.

What are the downsides of making biweekly mortgage payments?

The main downside of biweekly mortgage payments is the higher annual expense. Because you make 26 half-payments throughout a year, or 13 complete home loan payments, you'll make one additional loan payment each year. Depending on your loan and financials, the extra payment can be a significant problem to handle.

In many cases, biweekly payments might include extra costs. Some home mortgage loan providers charge an extra fee for biweekly payments or charge a penalty for loans that are paid off early. It's an excellent concept to research whether switching to biweekly payments with your loan provider has any associated costs so that you can determine the true cost of biweekly payments.

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

Use our mortgage calculator for biweekly payments to see the difference in total 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 lending institution concentrating on providing 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is seen as an industry leader and specialist in realty 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 keep up with essential changes in the industry to deliver the most worth to Griffin's clients. Under Lyons' management, Griffin Funding has made the Inc.
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