#Biweekly mortgage calculator with extra payment option free

Feel free to tell me what you need.Įnter non zero values for any 3 of the primary loan variables: 'Loan Amount,' 'Total Months,' 'Annual Interest Rate,' or 'Regular Monthly Payment.' Enter a '0' (zero) for the one unknown value.

Is a biweekly loan for you? As always, leave your comments or questions below. If you are a blogger, feel free to export ( ) any of the charts you create and to post them on your site to help prove your point!

#Biweekly mortgage calculator with extra payment option series

Chart depicting annual principal and interest amounts with a series of extra payments. Take a look at the recently updated charts to get a quick summary of all the details you'll find in the amortization schedules. If you are like me, you'll get tired of staring at columns of numbers. Remember though, there are usually risks to investing, while the interest saved with a biweekly mortgage or loan is a mathematical certainty. If the future value is more than that amount you save in interest, then perhaps you should not take out a biweekly mortgage? What you want to know is what will be the future value of $2,000 invested every year for the next 22 years or so (typically the term of the biweekly loan at today's interest rates). This Savings Calculator is a good place to start. Several calculators on this site will answer these questions for you. The question then is, if you invested the $2,000, how much would it earn over the term of the biweekly loan? Would you gain more than you expect to save interest charges? Not being able to save and invest is a forgone opportunity. If you make biweekly payments, you lose the opportunity to invest them. You should ask yourself, what else could you be doing with the $2,000? In the example, if you, the borrower, elects to pay every other week, you'll pay $2,000 more per year than if you make 12 monthly payments. This is an intentional design feature, not a bug!Ī biweekly loan and making extra payments will save you even more money.īut is doing either the right, long term, financial strategy? Forgone Opportunity Costs - They Could Cost You!Īt the top of this post, when explaining how a biweekly payment loan works and how it saves interest charges, I showed you some simple arithmetic. Note: In keeping with the theme of this calculator, the extra payment for the biweekly loan will be 1/2 the amount you enter. Or you may want to see how much the biweekly loan will save over the conventional loan when you add extra payments to get an additional saving boost. The idea here is, you may want to compare a debt paid biweekly without additional payments to a debt paid monthly, where you do plan to make extra payments. To see how much you'll save, you may apply the extra payment to either the monthly loan or the biweekly loan, or both.

This calculator supports both lump sum or one-time extra payments as well as a series of additional payments. The 'Loan Summary' shows how much interest the biweekly loan saves the borrower.Įven making one extra payment will save you interest. Doing this is called prepaying principal. When you decrease the amount owed, you lower the amount of interest due. If you have the available cash flow, you can make extra payments which are used to reduce the loan balance. This calculator will tell you precisely that. So the mortgage holder is paying more per year (the amount equal to one monthly payment), and the benefit to them for doing so is they'll be debt free sooner and the total interest paid will be lower. To put some numbers on this, if the monthly payment is $2,000, the mortgage holder will pay $24,000 a year when paying monthly. That's the same as making 13 monthly payments. Since there are 52 weeks in a year, you'll make 26 regular payments when paying every other week. The payment amount for a biweekly mortgage is one-half the monthly amount. Let's do the arithmetic! Don't worry it's elementary! Additionally, while you'll naturally make more payments with a biweekly loan, the loan will be paid-in-full sooner than with a monthly payment plan. The reason why you might want to pay a loan every other week is that you'll save on interest charges over its term. However, when your debt is a biweekly loan, you must pay every other week. What is a biweekly mortgage, and why would I want one?īorrowers usually pay mortgages monthly.