Biweekly Mortgage Calculator
Got a mortgage? Making monthly payments? Too bad. If you were making biweekly mortgage payments, you could save thousands of dollars and several years.
Here’s how it works: If you have an 8% 30-year mortgage of $150,000, and you’ve made a down payment of $20,000, the monthly payment is $947.58. To apply the biweekly mortgage technique, simply divide the monthly payment amount by two and pay that amount every two weeks. In effect, you’re making an extra payment each year. Seems insignificant, but the effects of biweekly mortgage payments are significant. With monthly payments, your total mortgage payments are $341,128. This amount includes total interest of $191,128.
In contrast, with biweekly mortgage payments you’ll pay total payments of $282,784, which includes total interest of $132,784. You’ll also pay off your loan in just under 23 years. So, with a biweekly payment schedule, you’ve saved a total of $58,343 and paid off your loan 7.11 years early.
If you’re curious about how much money you’ll save by making biweekly payments on your mortgage, the Biweekly Mortgage Calculator spreadsheet will give you the breakdown of all the relevant figures. It will show you how much principal and interest you can expect to pay if you make monthly payments, as well as for biweekly payments. Then, it will show you exactly how many years earlier you can pay off your house, as well as how many thousands of dollars you’ll save by paying every two weeks.
If you’re still not convinced about whether the biweekly plan is best for you, please click here to get your own copy of this amazing spreadsheet.