1. What is a Biweekly Mortgage Payment Calculator?

Definition: This calculator converts your monthly mortgage payment into an equivalent biweekly payment amount.

Purpose: It helps homeowners understand how much they would pay every two weeks when switching to a biweekly payment schedule.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( M_{bi} \) — Biweekly mortgage payment (USD)
• \( M_{monthly} \) — Monthly mortgage payment (USD)

Explanation: The monthly payment is simply divided by 2 to get the biweekly amount. This results in 26 payments per year (equivalent to 13 monthly payments).

3. Benefits of Biweekly Payments

Details: Making biweekly payments can help you pay off your mortgage faster and save on interest by effectively making one extra monthly payment each year.

4. Using the Calculator

Tips: Enter your current monthly mortgage payment amount. The calculator will show you the equivalent biweekly payment.

5. Frequently Asked Questions (FAQ)

Q1: How does biweekly payment save money?
A: By making 26 half-payments (13 full payments) per year instead of 12, you pay down principal faster, reducing total interest.

Q2: Is this calculator specific to Bankrate?
A: While based on Bankrate's methodology, the calculation is standard for biweekly mortgage conversions.

Q3: Will all lenders accept biweekly payments?
A: Most do, but some may charge a setup fee or require enrollment in a biweekly program.

Q4: How much faster will I pay off my mortgage?
A: On a 30-year mortgage, biweekly payments typically shorten the term by 4-5 years.

Q5: Does this affect my interest rate?
A: No, your rate stays the same, but more frequent payments reduce the principal faster.