1. What is Biweekly vs Monthly Mortgage?

Biweekly mortgage payments involve paying half of your monthly mortgage every two weeks, resulting in 26 half-payments per year (equivalent to 13 full monthly payments). This approach can save you money on interest and pay off your mortgage faster compared to traditional monthly payments.

2. How Does the Calculator Work?

The calculator uses standard mortgage formulas to compare total costs:

Where:

• \( P \) — Loan principal amount
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (years × 12)

3. Benefits of Biweekly Payments

Details: Biweekly payments can reduce your loan term by several years and save thousands in interest because you're making the equivalent of one extra monthly payment each year.

4. Using the Calculator

Tips: Enter your loan amount, interest rate, and loan term. The calculator will show your potential savings by switching to biweekly payments.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with biweekly payments?
A: Savings vary but typically range from 5-15% of total interest, depending on your loan terms.

Q2: Are there fees for biweekly payments?
A: Some lenders charge setup fees, but many offer free biweekly payment options.

Q3: How does this compare to making extra payments?
A: Biweekly is a systematic way to make extra payments without significantly impacting your budget.

Q4: Can I switch back to monthly payments?
A: Most programs allow you to revert to monthly payments if needed.

Q5: Does this work for all loan types?
A: Works best for fixed-rate mortgages. Check with your lender for ARM or other loan types.