What Is a Biweekly Mortgage Calculator?

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

A monthly home mortgage payment is standard for the majority of lenders. On a month-to-month schedule, you make one home loan payment every month, resulting in 12 home loan payments each calendar year. When you pay your home mortgage on a biweekly schedule, however, you pay half of a home mortgage payment every two weeks. Throughout a year, this results in 26 half payments or 13 full mortgage payments - one additional payment compared to a monthly schedule.

Curious what a biweekly home loan payment may mean for your financial resources? Whether you're thinking about switching a current home mortgage to biweekly payments or exploring a new home mortgage, it's a great concept to get a clear image of your payment options. Use our biweekly home loan calculator to compute the difference 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 info:

Principal loan balance: If you haven't begun paying your home mortgage yet, this will be the total loan amount. If you've been paying your home mortgage, get in the loan balance that stays.
Rates of interest: Enter the present rates of interest of your loan. Make certain to be precise to the decimal point.
Loan term: The term of your loan is the number 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 details here.

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

Next, it's time to see your reward outcomes. The biweekly mortgage calculator takes this information and generates two various computations:

Monthly home mortgage payments: First, the biweekly home loan calculator tells you the details of what a regular monthly payment might look like. It calculates your monthly payment amount, the overall interest you'll pay over the life time of your loan, and the typical interest you'll pay every month.
Biweekly mortgage payments: Next, the biweekly mortgage calculator provides 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 duration. You'll notice that by making biweekly home mortgage payments, you can decrease the overall 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 monthly payments (the black line) versus biweekly payments (the red area), noted here as the "Accelerated Balance".

You'll see that with biweekly mortgage payments, your loan balance will reduce at a faster rate and you'll settle your loan in less time. The more rapidly you pay off your loan, the less balance will remain that you require 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 between a regular monthly versus biweekly mortgage payment schedule may appear minimal, the extra month's mortgage payment each year makes a huge difference in the long run. Benefits of biweekly payments consist of:

Paying off the loan much faster: Because there's an additional loan payment every year, debtors who make biweekly payments settle their loans much quicker than regular monthly payment customers.
Paying less general interest: Because the loan is settled quicker, less primary loan balance remains to pay interest on. Over time, this results in considerably less interest paid. The higher 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 loan, the amount you paid off becomes your equity in your home. When you settle your home loan faster with biweekly payments, you'll build equity faster. This can be found in convenient if you decide to sell your home before the loan is paid off or if you want to secure a home equity loan, home equity credit line, or cash-out refinance at some point.

Biweekly vs. Bimonthly Payments

Some loan providers also offer 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 regular monthly home loan payment, this results in 12 payments each year. The only difference is that payments are made in half, two times per month.

Making bimonthly home mortgage payments can assist debtors minimize the quantity of interest paid over the life of the loan. However, they don't have as huge of an impact as biweekly mortgage payments, which help you pay off your loan faster, 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 find this payment schedule favorable. Some may discover that paying their loan right away after getting their income works well for their capital and budgeting efforts. Others might just feel much better paying a smaller amount two times every month, instead of paying a lump sum at one time.

Related Calculators

Interested in other tools to enhance your finances? We use a variety of calculators to assist you understand the monetary effects of various types of loan payments, rate of interest, and more:

Blended Rate Calculator: Do you have numerous various loans with multiple different rates? Our combined rate calculator averages these rates into a single rates of interest to assist you better comprehend just how much you're paying in interest.
DSCR Calculator: Use this tool to rapidly estimate your debt service protection ratio, which is a key metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home purchasers get approved for unique loans with a range of advantages, like low loan rates, no deposit, and more. Use this calculator to identify what a VA home mortgage may look like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent contractor, use our bank declaration calculator to see what kind of mortgage you can certify for using bank statements.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly buying down your interest rate is a wise choice based on your finances.
Debt Consolidation Calculator: A debt combination loan rolls numerous debts 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 manage when utilizing 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 lease or purchase? Our rent vs buy calculator can help you compare the brief- and long-lasting costs involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we offer flexible financing options and an unmatched client experience. In addition to traditional mortgage options like standard loans and VA loans, we also offer a wide range of non-QM loans.

Wish to find out more about your home mortgage alternatives? Reach out today and we can assist you discover a home mortgage that best lines up with your existing finances and long-lasting objectives.

Find the best loan for you. Connect today!

Frequently Asked Questions

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

Finding the right payment schedule depends on your specific needs. Biweekly mortgage payments might be a better option if:

You can manage to pay more cash each year: On a biweekly payment schedule, you'll be making one additional home mortgage payment each year. It is very important to determine whether there's room in your budget 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 far more quickly. Use our biweekly home loan calculator with extra payments to see how extra payments impact your loan term.
You desire to pay less interest: Because you pay off your loan faster with biweekly home loan payments, your loan will have less time to accrue 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 disadvantage of biweekly mortgage payments is the higher yearly expense. Because you make 26 half-payments throughout a year, or 13 full home mortgage payments, you'll make one additional loan payment yearly. Depending upon your loan and financials, the additional payment can be a substantial concern to take on.

In some cases, biweekly payments might come with additional costs. Some home mortgage lending institutions charge an extra cost for biweekly payments or charge a charge for loans that are paid off early. It's a great idea to research whether changing to biweekly payments with your lender has any associated costs so that you can determine the true expense of biweekly payments.

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

Yes. By changing 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 remaining balance. Because biweekly payments lower your staying 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 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 store mortgage loan provider concentrating on providing 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage business. Lyons is viewed as an industry leader and professional in genuine estate finance. Lyons has been featured 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 essential changes in the industry to provide the most value to Griffin's clients. Under Lyons' leadership, Griffin Funding has actually made the Inc.