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 payment amount (USD)
• \( M \) — Monthly payment amount (USD)

Explanation: The monthly payment is simply divided by 2 to get the biweekly equivalent.

3. Benefits of Biweekly Payments

Details: Making biweekly payments (26 per year) instead of monthly (12 per year) results in one extra monthly payment each year, which can significantly reduce your loan term and interest paid.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: Why is the biweekly payment exactly half the monthly payment?
A: This is the standard calculation that ensures you pay the equivalent of 13 monthly payments per year (26 biweekly payments = 13 monthly payments).

Q2: How much can I save with biweekly payments?
A: On a 30-year mortgage, switching to biweekly payments can typically reduce the term by 4-5 years and save thousands in interest.

Q3: Do all lenders accept biweekly payments?
A: Most do, but some may charge a setup fee. Always check with your lender before changing payment schedules.

Q4: Is this different from accelerated biweekly payments?
A: Yes, standard biweekly is half the monthly payment. Accelerated biweekly is 1/2 of what your monthly payment would be if calculated as a biweekly loan.

Q5: How does this affect my escrow payments?
A: Your principal and interest will be split, but taxes and insurance may still be paid monthly depending on your lender's policy.