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Bi-weekly Payments for an Existing Mortgage |
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This calculator shows you possible savings by using an accelerated bi-weekly mortgage payment. By paying ˝ your monthly payment every two weeks, each year your mortgage company will receive the equivalent of 13 monthly payments instead of 12. This simple technique can shave years off your mortgage and save you thousands of dollars in interest.
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Definitions
- Bi-weekly payments
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Bi-weekly savings are achieved by simply paying ˝ your monthly mortgage payment every two weeks and making 1 ˝ times your monthly mortgage payment every sixth month. By the end of a year you would have paid the equivalent of one extra monthly payment. This additional
amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your mortgage.
- Mortgage amount
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The total dollar amount for this mortgage.
- Interest rate
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The interest rate on this mortgage.
- Original mortgage term
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The number of years over which you would repay this loan if you made your normal monthly payment. The most common terms for mortgages are 15 years and 30 years.
- First payment date
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The date your mortgage started. We will use this date to calculate the time and balance remaining on your loan.
- Monthly escrow amount (optional)
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If you pay escrow, this is the monthly escrow amount due. With the bi-weekly program ˝ of this amount will be payed every two weeks.
- Monthly Prepayment amount (optional)
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Prepayment increases your savings even more. An additional payment is strictly optional. If you are also prepaying, please include your monthly prepayment amount. With the bi-weekly program ˝ of this amount will be debited every two weeks.
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