Biweekly Mortgage Calculator.

Use this free calculator to discover how much time and money you will save by making regular biweekly payments instead of monthly payments on your home. This calculator presumes one starts making biweekly payments at the onset of the mortgage. If you made regular monthly payments for a period of time before switching to biweekly payments and/or want to add extra funding to the payments, please use the advanced calculators here.

Before signing a loan contract, see how much you can save by comparing today's best rates.

Bi-weekly Mortgage Payment Calculator

Loan Information Amount
Your Mortgage Loan Information
Property Value: $
Home Loan Amount: $
Annual Interest Rate: %
Term of the Loan: years
Start Date of Mortgage:
Other Homeownership Expenses
Annual Real Estate Taxes: $
Annual Homeowners Insurance: $
Monthly HOA Fees: $
PMI: %
 

Biweekly Savings on Your 4.2% APR $260000 30-Year Home Loan

Monthly Payment Bi-Weekly Payment

$1,317.38

Regular Principal & Interest Payment

$658.69

Regular Principal & Interest Payment

$375.00

Other Homeownership Expenses

$173.08

Other Homeownership Expenses

$1,692.38

Combined Full Monthly Payment

$831.77

Combined Full Bi-weekly Payment

May, 2048

Pay-off Date

Dec, 2043

Pay-off Date

$214,257.45

Interest Paid

$178,029.45

Interest Paid

4 years 5 months

Time Saved With Biweekly Payments

$36,228.00

Total Interest Savings

The results shown at the top of the above table are based upon the portion of the loan payment which is applied toward principal and interest, with the payment amounts for biweekly P&I payments being half of the monthly payments. The numbers for other ownership expenses are displayed as being 12/26th of their monthly amounts, as the total annual home insurance or real estate taxes are not impacted by how frequently you pay on the loan. The reason the biweekly P&I payments are treated as half of the regular monthly P&I payments is so it helps create the equivalent of a 13th monthly payment each year to help homeowners pay down their loans faster.

Current 30-YR Fixed Mortgage Refinance Rates for $260,000 Home Loans

The following table highlights locally available current mortgage rates. By default 30-year purchase loans are displayed. Clicking on the refinance button switches loans to refinance. Other loan adjustment options including price, down payment, home location, credit score, term & ARM options are available for selection in the filters area at the top of the table.

Your $260,000.00 Home Loan Annual Amortization Schedule

Date Remaining Balance, Monthly Payments Remaining Balance, Bi-Weekly Payments
Nov, 2020 $255,578.19 $254,276.49
Nov, 2021 $250,967.04 $248,307.67
Nov, 2022 $246,158.46 $242,083.04
Nov, 2023 $241,143.98 $235,591.62
Nov, 2024 $235,914.79 $228,821.98
Nov, 2025 $230,461.70 $221,762.21
Nov, 2026 $224,775.12 $214,399.86
Nov, 2027 $218,845.05 $206,721.96
Nov, 2028 $212,661.06 $198,715.00
Nov, 2029 $206,212.29 $190,364.87
Nov, 2030 $199,487.40 $181,656.85
Nov, 2031 $192,474.56 $172,575.62
Nov, 2032 $185,161.44 $163,105.18
Nov, 2033 $177,535.19 $153,228.83
Nov, 2034 $169,582.40 $142,929.20
Nov, 2035 $161,289.09 $132,188.14
Nov, 2036 $152,640.68 $120,986.72
Nov, 2037 $143,621.95 $109,305.22
Nov, 2038 $134,217.06 $97,123.06
Nov, 2039 $124,409.48 $84,418.78
Nov, 2040 $114,181.95 $71,170.01
Nov, 2041 $103,516.50 $57,353.40
Nov, 2042 $92,394.38 $42,944.63
Nov, 2043 $80,796.03 $27,918.32
Nov, 2044 $68,701.06 $12,247.98
Nov, 2045 $56,088.21 $0.00
Nov, 2046 $42,935.30
Nov, 2047 $29,219.21
Nov, 2048 $14,915.83
Nov, 2049 $0.00

After all the other decisions you've made about buying a new home - finding the right house in the right neighborhood, the right lender and the right rate - you still have one more financial choice to make.

Should you opt for bi-weekly payments, or stick to the traditional schedule?

The answer to that important question lies in your personal lifestyle and your ability to manage money.

Let's use a hypothetical borrower named Mr. Green, whose monthly outlay is $2,162 for 30 years on a $325,000 debt. Put yourself in Mr. Green's shoes as we walk through the advantages and disadvantages of the bi-weekly approach.

How Do Bi-Weekly Payments Work?

Were you under the impression that there are exactly twice as many bi-weekly periods as monthly? Most people believe that, but let's look a little closer.

There are 12 months in a year, so there are 12 monthly outlays per year. But there are 52 weeks in a year, equaling 26 bi-weekly periods per year. By sending in money every two weeks instead of once month, you have magically created two additional bi-weekly outlays - the equivalent of a 13th monthly payment.

If you were to simply make two contributions a month, that would be just 24 a year, so actually this method has you making two extra contributions each year, which is the same as making an additional monthly contribution.

If you apply this additional amount toward the principal, you're ahead of the game. In a way, bi-weekly plans are a way of tricking yourself into extinguishing your debt faster, about 6 years sooner in most cases.

In Mr. Green's case, financing costs $2,162 each month and amounts to a yearly outlay of $25,946. But 26 bi-weekly installments of half the monthly amount adds up to (26 x $1,081)= $28,106.

Again, that extra $2,100 a year reduces the principal, allowing him to spend less on interest and to pay off his debt more quickly. For Mr. Green that spells a savings of $112,000 over the course of the loan, and it allows his home to be paid off 6 years and 4 months earlier.

Do Bi-Weekly Contributions Save You Money?

Yes and no.

Obviously, in the long run Mr. Green saves about 25% in interest, while reducing the same principal at a faster pace. However, the option of bi-weekly contributions comes with its own price tag. You didn't think saving all that interest money was free, did you?

Most lenders offer you the option of either an upfront fee, or paying as you go.

The top mortgage-servicing institutions in the country charge an average of $350 in enrollment fees and a small percentage of each transaction. In order to pay as you go, there are no up-front charges, but lenders levy a monthly service charge ranging from $4 to $9.

If that service charge seems like no big deal to you, remember that a 30-year note consists of 360 such charges.

So yes, in the long run a bi-weekly schedule will definitely save you some money, depending on the interest rate and the size of the loan. The more expensive your home, and the higher your interest rate, the more you'll save by contributing every two weeks.

The only way to really get ahead with bi-weekly payments is to find a way to do it without incurring those additional fees banks charge for the service.

Are Bi-Weekly Outlays A Good Option For You?

The only person who knows is you. You know your family's spending and savings habits, and your personal strengths and weaknesses. Are you disciplined financially, or do you just "wing it" and hope it all works out? If you're in the latter group, a bi-weekly schedule is a good way of forcing yourself to be more responsible & align your loan payments with your paychecks.

You're also a good candidate if you like the feeling of working down your debt as quickly as possible, and especially if you get a paycheck every two weeks.

Worker Union Logo.

Have you noticed that the genius of the bi-weekly plan is that it shadows your paycheck like a hawk? Since most Americans receive their salary checks every two weeks, lenders will schedule your automatic withdrawl to be taken from your bank account the day after you receive your paycheck.

If you like the idea of extinguishing your mortgage faster with less interest cost, or if you lack discipline in money matters and you don't mind paying the extra fees, by all means discuss your bi-weekly options with a professional financier.

What Are The Pros And Cons?

PROS:

  • They're easy and automatic
  • They coincide with bi-weekly paychecks
  • They save you about a quarter of your interest fees
  • They allow you to repay in full 5 or 6 years sooner
  • They make you more fiscally responsible

CONS:

  • They typically cost you extra money in sign-up and transaction fees
  • They're not worth it unless you plan to stay in your house for decades
  • They won't fit your retirement plans for monthly income checks
  • They may eat up funds that could be better invested in higher yielding options elsewhere (real estate prices roughly track general inflation, while the stock market vastly beats consumer price inflation)

You have to weigh the lofty feeling of paying off your dream home early against the reality that doing so may seriously cramp your style in other areas, or keep you from realizing other dreams you and your family may have.

What To Watch Out For - Buyer Beware

First of all, steer clear of rip-off artists who charge you exorbitant fees for making additional payments - you're smarter than that.

Next, make sure your loan has no prepayment penalty. Most do not nowadays, but if your lender penalizes you for early repayment, it defeats the whole purpose of biweekly payments.

Finally, you should realize that it may all be window dressing; some loan-servicing professionals may still make your payment once a month, they just like to collect it from you in two-week increments. That's just wrong.