Biweekly Mortgage Calculator
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Payoff Timeline
Interest Savings
Payment Impact Over Time
Monthly Payment Schedule
Bi-Weekly Payment Schedule
Understanding Bi-Weekly Mortgage Payments
Bi-weekly mortgage payments involve making half of your monthly payment every two weeks. Since there are 52 weeks in a year, this results in 26 payments per year instead of 12, effectively making one extra monthly payment annually.
How Bi-Weekly Payments Work
If your monthly payment is $1,200, your bi-weekly payment would be $600. Over the course of a year, you'd make 26 payments of $600, totaling $15,600. This is equivalent to 13 monthly payments of $1,200 ($15,600), meaning you make one extra payment per year.
Benefits of Bi-Weekly Payments
- Interest Savings: Extra payments reduce principal faster, saving thousands in interest
- Faster Payoff: Can shave years off your mortgage term
- Compound Effect: Earlier principal reduction leads to more interest savings over time
- Discipline: Structured payment schedule helps with budgeting
Bi-Weekly vs. Monthly Comparison
| Aspect | Monthly | Bi-Weekly |
|---|---|---|
| Payments per Year | 12 | 26 |
| Annual Amount | $14,400 | $15,600 |
| Extra Annual Payment | $0 | $1,200 |
Considerations
- Bank Fees: Some lenders charge fees for bi-weekly payment programs
- Cash Flow: Ensure you can afford the more frequent payments
- Prepayment Penalties: Check for penalties on your loan
- Tax Implications: Extra payments may affect property tax assessments
Tip: Bi-weekly payments can save significant money, but they're not for everyone. Consider your cash flow and whether you can stick with the payment schedule. Some people prefer making extra payments manually when they have extra cash.