Biweekly Mortgage Calculator
In a traditional mortgage payment plan, the borrower will pay a monthly mortgage payment for the term of the loan. However, with a biweekly payment schedule, the borrower makes a payment once every two weeks. Each payment is half the amount of what a traditional monthly payment would be. Now, you aren’t just making half a payment twice as frequently because this isn’t the same thing as paying twice a month. There are 52 weeks in a year, creating 26 payments. Paying twice a month, on the other hand, would amount to only 24 payments.
In other words, the borrower is paying an amount equal to an additional one month’s traditional mortgage each year with the biweekly payment schedule. This allows the borrower to pay off the loan at a much faster rate.
The borrower can also pay an additional amount into principal on top of what is required. Just doing the biweekly plan could cut almost a decade off your loan life, depending on your terms. And using both the biweekly and prepayment methods together would even cut the loan life a few years on top of that depending on how much you were paying extra.
The biweekly mortgage calculator will allow you to see when you will finish paying off your loan and how much money you will save. With this calculator, you can easily compare the advantages and disadvantages of the monthly and biweekly schedules. Another important feature is that you can easily see how interest will be affected. Although this new option will not change the rate itself, how much you are actually paying into interest versus into principal will change.
Plug predicted data into the biweekly calculator to see whether or not this will be beneficial for you and your financial situation.