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 begin making biweekly home loan payments.

A regular monthly home loan payment is basic for most loan providers. On a regular monthly schedule, you make one home mortgage payment every month, resulting in 12 mortgage payments each calendar year. When you pay your home loan on a biweekly schedule, nevertheless, you share of a home mortgage payment every two weeks. Over the course of a year, this results in 26 half payments or 13 full home mortgage payments - one extra payment compared to a regular monthly schedule.

Curious what a biweekly home loan payment may mean for your financial resources? Whether you're thinking of switching an existing mortgage to biweekly payments or checking out a new home loan, it's a great idea to get a clear picture of your payment options. Use our biweekly home loan calculator to calculate the distinction that biweekly payments can make.

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you have not begun paying your mortgage yet, this will be the overall loan quantity. If you've been paying your mortgage, go into the loan balance that stays.
Rate of interest: Enter the current interest rate of your loan. Make sure to be exact down to the decimal point.
Loan term: The regard to your loan is the number of years until the loan is due to be paid off. If you have a 30-year loan, your loan term is 30 years. Enter that details here.

Once this info has actually been gone into, all that's delegated do is press "Calculate".

Next, it's time to see your reward results. The biweekly home loan calculator takes this information and produces 2 various calculations:

Monthly home loan payments: First, the biweekly home loan calculator informs you the details of what a monthly payment may appear like. It calculates your month-to-month payment amount, the overall interest you'll pay over the life time of your loan, and the average interest you'll pay every month.
Biweekly mortgage payments: Next, the biweekly home mortgage calculator offers 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 average interest paid per period. You'll see that by making biweekly home loan payments, you can lower the overall quantity of interest paid over the life of the loan.

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

You'll see that with biweekly mortgage payments, your loan balance will decrease at a quicker rate and you'll pay off your loan in less time. The more rapidly you pay off 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 regular monthly versus biweekly mortgage payment schedule might seem very little, the additional month's home loan payment each year makes a big distinction in the long run. Benefits of biweekly payments consist of:

Paying off the loan much 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 settled quicker, less principal loan balance remains to pay interest on. Gradually, this results in substantially less interest paid. The higher your interest rate, the more of a difference paying biweekly can make in the amount of interest you pay.
Building equity 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 build equity quicker. This comes in helpful if you decide to offer your home before the loan is paid off or if you wish to get a home equity loan, home equity credit line, or cash-out re-finance at some time.

Biweekly vs. Bimonthly Payments

Some loan providers also offer the option to pay a loan bimonthly. Borrowers who do so will share of their loan payments every month, typically on the 1st and 15th. Similar to making a monthly home mortgage payment, this results in 12 payments each year. The only distinction is that payments are made in half, two times per month.

Making bimonthly home mortgage payments can assist debtors lower the amount of interest paid over the life of the loan. However, they don't have as big of an impact as biweekly mortgage payments, which assist you pay off your loan quicker, pay less interest gradually, and build equity in your house faster.

That said, bimonthly loan payments may be an excellent alternative for some. People who get paid on a bimonthly schedule might discover this payment schedule beneficial. Some might discover that paying their loan right away after getting their paycheck works well for their money circulation and budgeting efforts. Others might merely feel much better paying a smaller quantity two times monthly, rather than paying a swelling sum simultaneously.

Related Calculators

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

Blended Rate Calculator: Do you have multiple various loans with several various rates? Our mixed rate calculator averages these rates into a single rate of interest to assist you better understand how much you're paying in interest.
DSCR Calculator: Use this tool to quickly approximate your financial obligation service coverage ratio, which is an essential metric in identifying your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers get approved for unique loans with a series of advantages, 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 contractor, utilize our bank statement calculator to see what type of mortgage you can certify for using bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if momentarily purchasing down your rates of interest is a wise decision based on your finances.
Debt Consolidation Calculator: A debt consolidation loan rolls numerous financial obligations into a single payment, typically with a lower rate. See what a loan like this might appear like based upon your current debts.
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 mortgage payment impacts your loan term and the quantity of interest paid with our home mortgage reward calculator.
Rent vs Buy Calculator: Unsure about whether you should rent or buy? Our lease vs purchase calculator can assist you compare the short- and long-term expenses involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we provide versatile financing alternatives and an unmatched consumer experience. In addition to standard home loan alternatives like standard loans and VA loans, we also offer a vast array of non-QM loans.

Want to find out more about your home mortgage choices? Reach out today and we can help you discover a mortgage that finest lines up with your existing financial resources 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 mortgage payments may be a better choice if:

You can manage to pay more money each year: On a biweekly payment schedule, you'll be making one extra home loan payment each year. It is very important to determine whether there's space in your budget plan for this cost.
You desire to pay your loan off more rapidly: Depending upon the regards to your loan, making biweekly payments will allow you to settle your loan far more rapidly. Use our biweekly home loan calculator with extra payments to see how additional payments impact your loan term.
You desire to pay less interest: Because you pay off 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 useful to those with a relatively high home mortgage rate.

What are the disadvantages of making biweekly home loan payments?

The primary downside of biweekly home mortgage payments is the greater yearly expense. Because you make 26 half-payments throughout a year, or 13 full home loan payments, you'll make one additional loan payment every year. Depending upon your loan and financials, the additional payment can be a considerable burden to handle.

In many cases, biweekly payments may come with additional costs. Some mortgage lending institutions charge an additional cost for biweekly payments or charge a penalty for loans that are paid off early. It's a good idea to research whether switching to biweekly payments with your lender has any involved costs so that you can calculate the true cost of biweekly payments.

Does making biweekly payments decrease the amount 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 percentage of your loan's staying 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 difference 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 loan provider focusing on providing 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is seen as a market leader and professional in property financing. Lyons has actually been included 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 essential modifications in the market to provide the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has made the Inc.