Biweekly Mortgage Payment Calculator
What is a biweekly mortgage?
Borrowers usually pay mortgages monthly. With a biweekly loan, borrowers make a payment every other week.
Why would I want a biweekly loan?
You should consider a biweekly payment plan because you will save on interest charges over the term of the loan. In addition, although you will make more payments with a biweekly loan, you will pay off the loan sooner than with a monthly payment plan.
Biweekly mortgage calculator calculates interest saved when borrower pays one-half of the monthly payment every other week. Compare two loans in one schedule.
- Borrowers pay a traditional mortgage monthly.
- With a biweekly mortgage, a payment is due every other week.
- The biweekly payment amount is one half the monthly amount.
- You can compare the two loans in one printable schedule.
How will a biweekly mortgage reduce the interest amount paid?
The payment amount for a biweekly mortgage is one-half of the monthly amount. Since there are 52 weeks in a year, you will make 26 regular payments when paying every other week. That is the same as making 13 monthly payments.
For example, if the monthly payment is $2,000, the mortgage holder will pay $24,000 per year when paying monthly. When paying biweekly, the mortgage holder will pay $26,000 ($2,000 / 2 = $1,000 × 26 = $26,000) per year.
The mortgage holder pays more per year (an amount equal to one monthly payment). The benefit is that the debt will be paid off sooner, and the total interest paid will be lower.
How much will you save with a biweekly payment plan?
The amount you save depends on the total amount of the loan and the interest rate. The higher the loan amount or interest rate, the more you will save in absolute terms. Use this calculator to calculate your specific savings. More details below…