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Biweekly Payment Formula:
Where Extra is the annual additional payment amount distributed across biweekly payments.
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This calculator helps you determine your new biweekly mortgage payment when adding extra annual payments. By making biweekly payments (every two weeks) plus additional annual payments, you can pay off your mortgage faster and save on interest.
The calculator uses the following formula:
Where:
Explanation: The extra annual payment is divided by 26 to spread it evenly across all biweekly payments throughout the year.
Details: Making biweekly payments results in 26 half-payments per year (equivalent to 13 monthly payments), which helps pay down your principal faster. Adding extra payments accelerates this process even more, potentially saving thousands in interest and shortening your loan term.
Tips: Enter your current biweekly payment amount and the additional annual amount you want to pay. The calculator will show your new biweekly payment amount that includes the extra payment distributed across the year.
Q1: How much can I save with biweekly plus extra payments?
A: Savings depend on your loan amount, interest rate, and term. Generally, this strategy can reduce a 30-year mortgage by several years and save 20-30% in interest.
Q2: Is there a minimum extra payment amount?
A: No, even small extra payments make a difference over time due to compound interest savings.
Q3: Will my lender automatically apply extra payments to principal?
A: Most do, but you should verify with your lender and specify that extra amounts should go toward principal reduction.
Q4: Are there prepayment penalties?
A: Most modern mortgages don't have prepayment penalties, but check your loan documents to be sure.
Q5: Can I stop extra payments if my financial situation changes?
A: Yes, extra payments are voluntary and can be adjusted or stopped at any time.