Bi-Weekly Mortgage Calculator - Extra Payment
This bi-weekly mortgage calculator has more features than most including the ability to add an extra payment and print amortization schedules.
Use this calculator to figure how much interest you can save by making 1/2 of your mortgage payment every two weeks instead of a full payment monthly. The net effect is just one extra mortgage payment per year but the interest savings can be dramatic.Also, this calculator has the ability to add an extra amount (extra payment) to the monthly mortgage and turbo charge your interest savings. With this unique 4 column format you can compare scenarios side-by-side, print amortization schedules, and plan your payoff strategy. Finally, if you're not sure how much extra payment to add to payoff your mortgage by a given date try this mortgage payoff calculator here to figure the payoff in terms of time instead of interest saved.
Bi-Weekly Mortgage Payment
The Bi-weekly mortgage payment is another strategy of mortgage payment that can help you save a lot of money in interest and pay off your mortgage earlier. Instead of you making a once a month payment, your 12 monthly payments in a year will be split into 2, making it to 24 payments. A bimonthly mortgage payment may or may not involve extra payments. By making an advance payment by half a month, you save a little interest, which means that a slightly larger part of succeeding payments is applied to your principal. If your principal is reduced, you also reduce the total interest paid and the length of time it takes to pay the loan.
Even though this option gives an advantage to those borrowers who can afford extra payments, most of them still find this a tedious task since it will double their work of paying each month. Also, most lenders don’t like the idea of receiving half payments each month. But nowadays, banks offer a bi-weekly payment plan making it easier for you to potentially save thousands in mortgage interest. All you need to do is fund your account for the payments and the bank will make an arrangement to your lenders to pay them monthly even though banks debits your account twice a month. But before you instruct your bank to do the bi-weekly payment, find out if you can really save from interest using the Bi-Weekly Mortgage Calculator – Extra Payment calculator. The above calculator possess an additional feature that enables you to make extra payments to your mortgage loan to maximize your interest savings.
Is It For You?
The idea of splitting your mortgage payment in half and making a payment every two weeks rather than once a month does not require a deep explanation. What you may need to understand is how this can help you. If you are sold to the idea of having the bank automatically draft a payment that coincides with your biweekly paycheck, you have very little discipline in terms of managing your money and you don’t worry too much about paying extra fees, then a bi-weekly payment schedule might be just right for you. Before you jump in, ask yourself few questions to properly assess your situation.
In A Nutshell
The positive result of reducing the principal faster and saving interest is that you will pay off your mortgage more quickly. It is estimated that you can reduce the length of your mortgage loan term by around 6 to 8 years if you implement this strategy.
If you are receiving your salary twice a month, it will be more convenient for you to do the bi-weekly mortgage payments. You can allocate your payments easily rather than exhaust all your money before the payment due date. If you’re still confused whether this payment option is best for you, use the above bi-weekly mortgage calculator to help you see the total savings that you could be getting.
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