1. What is Biweekly Mortgage Payment?

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

2. How Does the Calculator Work?

The calculator uses the standard mortgage formula:

Where:

• \( M \) — Monthly payment
• \( P \) — Principal loan amount
• \( r \) — Monthly interest rate (annual rate divided by 12)
• \( n \) — Number of payments (loan term in years multiplied by 12)

Explanation: The biweekly payment is half the monthly payment, and adding extra payments further reduces the principal faster.

3. Benefits of Biweekly Payments

Details: Making biweekly payments can shorten your loan term by several years and save thousands in interest, as you're effectively making one extra monthly payment each year.

4. Using the Calculator

Tips: Enter your loan amount, interest rate, and term. Optionally add an extra payment amount to see how additional payments affect your savings.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with biweekly payments?
A: Savings vary but typically range from 15-25% of total interest over the loan term.

Q2: Is biweekly better than monthly with extra?
A: Mathematically similar, but biweekly can be easier to budget as it aligns with many pay schedules.

Q3: Do all lenders offer biweekly payments?
A: Not all, but you can create your own plan by making half payments every two weeks.

Q4: Are there fees for biweekly payments?
A: Some lenders charge setup or processing fees - ask before enrolling in a program.

Q5: How does the extra payment option help?
A: Extra payments go directly toward principal, further reducing interest and loan term.