See if paying your mortgage payment bi-weekly will benefit you.
Making bi-weekly mortgage payments may help you reduce interest costs and pay off your loan faster. Use this calculator to see how much money you can save on your mortgage by making payments every 2 weeks instead every month. You can also shorten the term of the loan by using this process.
How It Works
To calculate your potential savings, follow these steps:
- Enter the principal balance of your mortgage: This is the remaining balance on your current loan
- Enter your monthly mortgage payment: Include the principal and interest portion only
- Enter your current interest rate: Use the interest rate listed on your mortgage
- The calculator will compare your current payment schedule to a bi-weekly payment plan
Your Bi-Weekly Mortgage Results
After calculating, we explain that what you are really doing is adding a 13th payment to your annual number of payments, and splitting it up between 26 bi-weekly payments. We’ll show you:
- Total interest paid with your current monthly payment plan
- Total interest paid with a bi-weekly payment schedule
- Interest savings from switching to bi-weekly payments
Bi-weekly payments effectively result in one additional mortgage payment each year, which helps reduce your principal balance faster and may shorten your loan term.
Want to Pay Off Your Mortgage Faster?
If you’re exploring strategies to reduce interest or shorten your mortgage timeline, the team at Educated Mortgage can help you review your options.
Contact Educated Mortgage to discuss refinancing opportunities and ways to save on your mortgage long term.