Biweekly Mortgage Calculator - See Your Savings

A biweekly mortgage repayment plan is one of the best tools available to most people with a mortgage. Lenders now offer this type of plan because of the demand for it, and because it creates a steady repayment method for them with less risk of default. The benefit to you, the homeowner, is simple: with this payment plan you can save thousands of dollars on your mortgage loan and cut down the time it takes to repay it. You can see the benefits right now with the help of a biweekly mortgage calculator.

What Is A Biweekly Payment Plan?

With a biweekly payment plan, you are not getting a new loan or doing anything drastic to your current one. You are simply making your payment in a different way. Instead of one payment every month, for a total of 12 payments per year, you make one payment every two weeks. The benefit comes from the fact that you actually make 26 payments per year, which ends up being the same as making 13 regular monthly payments. The goal is simple: pay every two weeks and you make one full extra payment every year without realizing you are doing it or even feeling the difference in money.

Most programs are set up directly through your mortgage lender. In some cases you may have to pay a fee to have the program set up, or you may need to pay your mortgage ahead of time. The result is that you pay a good amount of money on your home that is applied to your principal (be sure that it is!), cutting down the term of the loan and what it will cost you in the long run. This saves you thousands of dollars in the process.

How A Biweekly Program Saves You Money

The best way to show the benefit is with an example. You can use a biweekly mortgage calculator to get this information for your own loan, too. Here's an example of how much you could save.

As you can see, the benefits are there. You would pay off your loan just one month shy of 6 years early. More importantly, you would save over $58,782 in interest on that loan. That is a remarkable amount of money. What would you do with it? The goal is to put the money you earn to better use by making payments every two weeks. The extra payment you end up making each year can save you thousands of dollars on your loan.

Use A Mortgage Calculator To Find Your Savings

A biweekly payment plan can really help you save money, and in many ways it will hardly affect you at all. In the example above, if you were told to make an extra payment of $1264 on the loan each year, you might balk at that amount. Yet because you are paying every two weeks instead of monthly, you can save that money without feeling the pain of making an extra payment. Most lenders make these programs automatic biweekly withdrawals from your bank account, which simplifies things even further. But how does this help you?

Use a mortgage calculator to see the benefits for your specific loan. What you will find is that no matter where you are in your loan, what you pay, or how you pay, you are likely to save a considerable amount of money. You do not need a new loan to get started with this type of savings plan, and you do not need to guess at your savings, because the calculator shows you exactly what it is.

Many biweekly repayment plans can help you in other ways, too. For example, if you want to put an additional amount toward your principal balance each month, they can often accommodate this. Perhaps you would be making a $632 payment every two weeks. By rounding that up to $650 or $700 and applying the extra to your principal, you pay off your loan even faster and for less. In addition, many people find that two smaller payments each month are simpler and much more affordable. Many can afford to do this and do not realize it.

Consider how a biweekly repayment plan could help you. You may quickly find that it is the right way to save a considerable amount of money on the loan you already have in place. Use a mortgage calculator to see the sheer savings you could be getting, and take full advantage of the options available through your lender. If your lender does not offer this, they may still allow you to make half payments two times per month.