1. What is a Bankrate Biweekly Mortgage Calculator?

Definition: This calculator converts monthly mortgage payments into equivalent biweekly payments and calculates the total yearly payment amount.

Purpose: It helps homeowners understand how biweekly payments affect their mortgage and yearly payment totals.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• \( M_{bi} \) — Biweekly payment amount (USD)
• \( M \) — Monthly mortgage payment (USD)
• 26 — Number of biweekly periods in a year

Explanation: The monthly payment is halved to get the biweekly amount, then multiplied by 26 (biweekly payments per year) to get the total yearly payment.

3. Benefits of Biweekly Payments

Details: Making biweekly payments results in 26 half-payments per year (equivalent to 13 monthly payments), which can help pay off your mortgage faster and save on interest.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: How does biweekly payment save money?
A: By making 26 half-payments annually (equivalent to 13 monthly payments), you effectively make one extra monthly payment each year.

Q2: Is the biweekly amount exactly half the monthly payment?
A: Yes, the standard Bankrate method uses exactly half the monthly payment for biweekly calculations.

Q3: 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, depending on your interest rate.

Q4: Are there any fees for switching to biweekly?
A: Some lenders charge setup fees, while others offer it for free. Check with your mortgage servicer.

Q5: Can I use this for any loan type?
A: Yes, this calculation works for any amortizing loan (mortgage, auto, personal) with fixed monthly payments.