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 might be time to start making biweekly mortgage payments.

A regular monthly home mortgage payment is standard for most lenders. On a monthly schedule, you make one home mortgage payment each month, leading to 12 mortgage payments each calendar year. When you pay your home mortgage on a biweekly schedule, however, you share of a home loan payment every 2 weeks. Throughout a year, this results in 26 half payments or 13 full mortgage payments - one additional payment compared to a month-to-month schedule.

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

How Does the Biweekly Mortgage Calculator Work?

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

Principal loan balance: If you have not started paying your mortgage yet, this will be the total loan quantity. If you have actually been paying your mortgage, get in the loan balance that remains.
Rate of interest: Enter the present rates of interest of your loan. Ensure to be precise down to the decimal point.
Loan term: The term of your loan is the variety of years till the loan is due to be paid off. If you have a 30-year loan, your loan term is thirty years. Enter that information here.

Once this details has been entered, all that's delegated do is press "Calculate".

Next, it's time to see your reward outcomes. The biweekly home mortgage calculator takes this details and generates 2 different calculations:

Monthly home loan payments: First, the biweekly mortgage calculator tells you the information of what a monthly payment might look like. It determines 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 home loan payments: Next, the biweekly mortgage calculator provides the biweekly payment information. You'll see the biweekly mortgage payment amount, total interest you'll pay over the life of the loan, and the typical interest paid per period. You'll discover that by making biweekly home loan payments, you can decrease the overall quantity of interest paid over the life of the loan.

Under the calculator results, the biweekly home loan calculator shows a chart of your loan balance in time when using regular monthly payments (the black line) versus biweekly payments (the red area), 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 pay off your loan in less time. The more quickly you pay off your loan, the less balance will remain that you require 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 month-to-month versus biweekly home mortgage payment schedule might seem minimal, the additional month's home loan payment each year makes a big difference in the long run. Benefits of biweekly payments consist of:

Paying off the loan quicker: Because there's an extra loan payment every year, borrowers who make biweekly payments pay off their loans much faster than regular monthly payment debtors.
Paying less total interest: Because the loan is settled faster, less primary loan balance remains to pay interest on. Over time, this leads to significantly less interest paid. The higher your rates of interest, the more of a difference paying biweekly can make in the quantity of interest you pay.
Building equity quicker: As you pay off your home loan, the quantity you paid off becomes your equity in your home. When you settle your home mortgage more rapidly with biweekly payments, you'll construct equity faster. This can be found in helpful if you choose to offer your home before the loan is paid off or if you desire to get a home equity loan, home equity line of credit, or cash-out refinance at some point.

Biweekly vs. Bimonthly Payments

Some lenders also offer the choice to pay a loan bimonthly. Borrowers who do so will pay half of their loan payments every month, generally on the 1st and 15th. Much like making a regular monthly home mortgage payment, this results in 12 payments each year. The only difference is that payments are made in half, twice per month.

Making bimonthly mortgage payments can help borrowers decrease the amount of interest paid over the life of the loan. However, they don't have as big of an effect as biweekly home loan payments, which help you settle your loan faster, pay less interest in time, and build equity in your house much faster.

That said, bimonthly loan payments might be a great option for some. People who make money on a bimonthly schedule might discover this payment schedule beneficial. Some might find that paying their loan immediately after receiving their paycheck works well for their capital and budgeting efforts. Others may simply feel much better paying a smaller amount two times monthly, instead of paying a lump amount at one time.

Related Calculators

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

Blended Rate Calculator: Do you have multiple various loans with numerous different 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 financial obligation service coverage ratio, which is a key metric in determining your eligibility for a DSCR loan.
VA Loan Calculator: Veteran home buyers get approved for special loans with a variety of advantages, like low loan rates, no deposit, and more. Use this calculator to determine what a VA mortgage might look like for you.
Bank Statement Loan Calculator: If you're self-employed or an independent professional, use our bank declaration calculator to see what sort of home mortgage you can certify for utilizing bank declarations.
2/1 Buydown Calculator: Use our 2/1 buydown calculator to see if briefly purchasing down your rate of interest is a smart decision based upon your finances.
Debt Consolidation Calculator: A debt combination loan rolls numerous financial obligations into a single payment, generally with a lower rate. See what a loan like this may look like based on 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 changing your home loan payment effects your loan term and the amount of interest paid with our home loan benefit calculator.
Rent vs Buy Calculator: Unsure about whether you should lease or purchase? Our rent vs buy calculator can assist you compare the brief- and long-term costs involved with both alternatives.

Explore Flexible Mortgage Options

At Griffin Funding, we offer versatile loaning alternatives and an unrivaled customer experience. In addition to traditional home loan choices like conventional loans and VA loans, we also provide a wide range of non-QM loans.

Want to discover more about your mortgage alternatives? Reach out today and we can help you discover a mortgage that finest lines up with your present finances and long-term goals.

Find the very best loan for you. Reach out today!

Frequently Asked Questions

Is it better to do month-to-month or biweekly mortgage payments?

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

You can manage to pay more money each year: On a biweekly payment schedule, you'll be making one extra mortgage payment each year. It is essential to identify whether there's room in your spending plan for this cost.
You wish to pay your loan off more rapidly: Depending upon the terms of your loan, making biweekly payments will enable you to settle your loan a lot more quickly. Use our biweekly home loan calculator with additional payments to see how extra payments effect your loan term.
You wish to pay less interest: Because you settle your loan faster with biweekly home loan payments, your loan will have less time to accrue interest and you'll pay less interest in time. This can be especially beneficial to those with a fairly high home mortgage rate.

What are the drawbacks of making biweekly home mortgage payments?

The primary disadvantage of biweekly mortgage payments is the greater yearly expense. Because you make 26 half-payments over the course of a year, or 13 complete home loan payments, you'll make one additional loan payment each year. Depending upon your loan and financials, the additional payment can be a considerable concern to take on.

Sometimes, biweekly payments might include extra costs. Some mortgage loan providers charge an additional 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 lender has any involved costs so that you can determine the true cost of biweekly payments.

Does making biweekly payments lower 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 accumulates as a percentage of your loan's staying balance. Because biweekly payments lower your staying balance at an accelerated speed, 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 shop mortgage lender concentrating on delivering 5-star service to its clients. Mr. Lyons has 23 years of experience in the mortgage service. Lyons is viewed as a market leader and professional in realty 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 crucial changes in the industry to deliver the most worth to Griffin's customers. Under Lyons' leadership, Griffin Funding has actually made the Inc.