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Biweekly Mortgage Calculator

Want to save thousands of dollars in interest on your mortgage? Amplify Credit Union's Biweekly Mortgage Calculator can help.

Most people know about monthly mortgage payments— but did you know that oftentimes you can pay off your home loan on a biweekly basis? 

Instead of making one payment every month, you'll make one payment every two weeks with a biweekly payment plan. Each payment will be half of what you would normally pay in a month. In many cases, a biweekly payment schedule can help a homeowner pay off their principal balance quicker and lowers the total interest paid over the loan's lifetime. 

Use the payment calculator below to compare biweekly and monthly home mortgages. This biweekly mortgage calculator can be used to solve four different variables: your monthly payment, loan rate, loan term, or total loan amount. To learn more about this tool, refer to the section below the calculator.

Important Terms to Know Related to the Biweekly Mortgage Calculator

Not sure how to fill out the information in the calculator? Here's a handy list of terms you'll see throughout this tool.

Amortization

This word sounds complicated, but amortization is just a fancy term for the process of paying off debt over time through regular payments that cover both the principal and interest.

The amortization table on the calculator shows you how much goes towards your principal and how much it goes towards the interest with each payment you make. You'll notice that less of your payment goes towards interest and more goes towards the principal balance as time goes on. 

Keep in mind that the amortization table in this calculator does not account for the extra payments you make. 

Biweekly mortgage payments

With a biweekly mortgage payment plan, borrowers make payments once every two weeks instead of once a month. Every payment is equal to half of one full month's mortgage payment. But since there are 52 weeks in a year, that works out to 26 half-payments, or thirteen (13) full payments. Over the long run, these 26 payments per year allow you to shave years off your mortgage and save thousands of dollars in interest.

Always be sure to check with your loan officer to ensure there will be no penalties for an early mortgage payoff.

Extra principal payment

An extra principal payment is additional money you use to pay down your loan balance beyond the required monthly payment. Making extra payments towards your principal loan balance can help you build equity in your home faster, save you in interest payments, and allow you to pay off your mortgage faster.

Loan Amount

The loan amount is simply how much you are borrowing. It is important to note that this is not the house's purchase price— just the money that the bank lends you. If you need to estimate your loan amount, subtract your down payment from the home's purchase price. This is the amount of money that you will need to borrow.

The down payment is the initial payment that a borrower puts up when purchasing a house. Homebuyers will put a percentage of the home's value down (usually 5% to 20%) and borrow the rest.

Loan rate

Also known as your interest rate, the loan rate is what a lender charges in exchange for letting you borrow the money. It is calculated as a percentage of the loan balance. 

On a traditional fixed-rate mortgage, this percentage is fixed and will not fluctuate over the loan course. Adjustable-rate mortgages (ARMs), on the other hand, have interest rates that are subject to change. This calculator assumes a fixed-rate mortgage.

Several factors determine your loan's interest rate. The factors include your credit score and history, the house's location, the loan amount, the size of your down payment, the loan type, and more.

Loan term

The loan term is just another way to say the total length of the loan. The most common loan term is 30 years, but nowadays, it's also common to see 15-year and 20-year loans. A mortgage with a longer-term means smaller monthly payments paid for a greater period of time. A mortgage with a smaller term will have larger payments, but the borrower will repay the money much sooner.

Monthly loan payment

This is the traditional payment schedule in which borrowers make payments once a month for the loan duration. Borrowers will make twelve (12) full payments a year.

Your monthly mortgage payment is composed of both principal and interest. Other components typically include taxes and insurance, which are placed into an escrow account and paid to the appropriate parties at the end of the year.

Mortgage principal

All mortgage payments are made of at least two main components: principal and interest. The principal is the amount that you actually borrow from the bank when you take out your loan. This means that your initial principal balance will equal your loan amount. 

As you pay off your mortgage, your principal balance will decrease. Keep in mind that most traditional mortgages, your first payments will consist mainly of interest. As you continue to pay off your loan, more of your monthly payment will go towards your principal balance. This is depicted in the amortization table section of the mortgage calculator. 

Total Interest

Total interest is the combined amount that you will pay in interest over the entire loan term. Since interest is a percentage of your loan amount, the bigger your loan, the more interest you will pay. Similarly, the longer your loan term, the longer you have to pay interest, thus increasing your total interest amount.

More Financial Calculators

Looking for more financial resources like this? Check out Amplify Credit Union’s calculator resource page. You’ll find more homebuyer calculators, plus tools for retirement, college students, and more.

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