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Bi-weekly mortgage calculatorWhat is a bi-weekly mortgage?A bi-weekly mortgage is an accelerated way to repay a mortgage loan. This bi-weekly mortgage calculator will automatically calculate everything for you. How is a bi-weekly mortgage calculated?Basically, a mortgage loan is usually paid with monthly payments. Not so with bi-weekly mortgage payments. A bi-weekly mortgage loan is paid every second week. So instead of having 12 payments (one per month), you have 26 payments per year. Now of course, like this bi-weekly mortgage calculator will show you, the bi-weekly payments are much smaller than the monthly payments, twice as small in fact. But been twice as small, does not mean that you will pay less in a year, in fact, with a bi-weekly mortgage payment system, you repay much more in a year than with a monthly mortgage payment system. The equivalent of one full month! But since you repay it every second week (that's why it's called bi-weekly), it doesn't look as bad. Bi-weekly mortgage payments make you save money!This bi-weekly mortgage calculator will show you that by paying a little more every second week, you save bundles! In fact, it's so good, you can buy this bi-weekly mortgage calculator software by clicking right here. How do you save money with accelerated bi-weekly payments? Lets say that you borrowed $100,000 at 4.3875% (great interest rate!) with a loan term of 30 years. On such a mortgage loan, your normal monthly payment should be $500.00 What would your accelerated bi-weekly mortgage payment be? Simple, half of what you would pay every month: $250.00 Well... at the end of the year, with a bi-weekly payment system, you will have paid $6,500.00, which is $500 more than with a monthly mortgage payment loan (Are we really saving money? Yes... keep reading.) However, and this is the whole purpose of the accelerated bi-weekly mortgage payment system, with the bi-weekly mortgage payment system you will repay the loan in 25 years and seven months (4 years and 5 months earlier than with a monthly mortgage payment system) Better yet... with a bi-weekly mortgage payment system, the loan will cost you less... $13,366.00 less! Check it yourself with this bi-weekly mortgage calculator. You will find out that by paying $19.00 more every second week, you will save $13,366.00 on a $100,000 loan at 4.3875 % interest rate on a 30 years term.
Bi-weekly mortgage calculatorA by-weekly mortgage calculator allows to see that when you accelerate your mortgage payments with a bi-weekly mortgage payment system, you repay your loan much faster, and you save quite a bit in INTEREST in the process. Test it yourself with anyone of the calculators on the bi-weekly mortgage calculator web page. The above example was with a great interest rate... Do you know how much you can save on a 6% interest rate on the same $100,000 borrowed amount? $24,812.00 ! And How about one with a lower interest rate? Now that the banks are finally getting more serious about loans, you should too!
Accelerated weekly mortgage payments and accelerated bi-weekly mortgage paymentsAccelerated weekly and accelerated bi-weekly mortgage payments options are calculated by taking a monthly mortgage payment schedule and assuming there are only four weeks in a month. Accelerated bi-weekly mortgage payments are calculated by the mortgage calculator by taking your normal monthly payments and dividing them by two. Since you would pay 26 bi-weekly mortgage payments, by the end of a year you would have paid the equivalent of one extra monthly mortgage payment (a 13th month). This additional mortgage payment amount accelerates your loan payoff by going directly against your mortgage loan’s principal. The effect can save you thousands of dollars in interest and take years off of your mortgage loan. Accelerated weekly mortgageThe accelerated weekly mortgage payments of a loan are calculated by dividing your monthly payments by four. You would then make 52 weekly mortgage payments. Just like the accelerated bi-weekly mortgage payments, you are in effect paying an additional monthly payment each year. The mortgage interest savings on an accelerated weekly mortgage payment plan are minimal when compared to those of the accelerated bi-weekly mortgage payments. This is because only the time factor is different, and it’s minimal. The big savings occur when you go from monthly mortgage payments to bi-weekly mortgage payments or from monthly mortgage payments to weekly mortgage payments. Why? Because when you go from bi-weekly mortgage payments to weekly mortgage payments you do not add any extra money, you only pay the principal amount of the loan a little bit faster.
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