1. What is a Biweekly Mortgage?

A biweekly mortgage involves making payments every two weeks instead of monthly. This results in 26 half-payments per year (equivalent to 13 full monthly payments), which can significantly reduce the loan term and total interest paid.

2. How Does the Calculator Work?

The calculator uses the biweekly mortgage formula:

Where:

• \( PMT_{Bi} \) — Biweekly payment amount
• \( PV \) — Principal loan amount
• \( r \) — Annual interest rate (in decimal)
• \( n \) — Loan term in years

Explanation: The formula calculates the fixed payment amount needed to fully amortize the loan over the specified term with biweekly payments.

3. Benefits of Biweekly Payments

Details: Making biweekly payments can shorten your loan term by several years and save thousands in interest. For a 30-year mortgage, biweekly payments typically pay off the loan in about 24 years.

4. Using the Calculator

Tips: Enter the loan amount in USD, annual interest rate as a percentage (e.g., 3.5 for 3.5%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with biweekly payments?
A: Savings vary but typically range from 20-30% of total interest over the life of the loan.

Q2: Is this different from making extra payments?
A: Yes, biweekly payments are a structured approach that results in exactly one extra monthly payment per year.

Q3: Do all lenders offer biweekly payments?
A: Not all lenders offer true biweekly programs. Some may simply divide your monthly payment in two.

Q4: Are there fees for biweekly payments?
A: Some lenders charge setup or processing fees for biweekly payment programs.

Q5: Can I switch back to monthly payments?
A: Most lenders allow you to switch payment schedules, but check your loan terms.