1. What is a Paying Mortgage Biweekly Calculator?

Definition: This calculator determines how making biweekly mortgage payments affects the total number of payments needed to pay off your loan.

Purpose: It helps homeowners understand the benefits of biweekly payments compared to traditional monthly payments.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( n' \) — Reduced number of payments (unitless)
• \( P \) — Principal loan amount (USD)
• \( r \) — Interest rate (decimal)
• \( M_{bi} \) — Biweekly payment amount (USD)

Explanation: The formula calculates how many biweekly payments are needed to pay off the mortgage, accounting for the accelerated payment schedule.

3. Importance of Biweekly Payments

Details: Making biweekly payments (half your monthly payment every two weeks) results in 26 half-payments per year, equivalent to 13 full monthly payments. This extra payment each year can significantly reduce your loan term.

4. Using the Calculator

Tips: Enter your principal loan amount, interest rate (as a decimal, e.g., 0.04 for 4%), and your biweekly payment amount. All values must be > 0.

5. Frequently Asked Questions (FAQ)

Q1: How much can biweekly payments save me?
A: Typically, biweekly payments can reduce a 30-year mortgage by 4-8 years and save thousands in interest.

Q2: Is the interest rate annual or monthly?
A: The calculator uses the annual interest rate expressed as a decimal (e.g., 0.05 for 5%).

Q3: What if my lender doesn't offer biweekly payments?
A: You can make half-payments every two weeks yourself, but check with your lender about how they apply partial payments.

Q4: How do I calculate my biweekly payment?
A: Divide your monthly payment by 2. For example, if your monthly payment is $1,200, your biweekly would be $600.

Q5: Does this account for property taxes and insurance?
A: No, this calculation is for principal and interest only. Your actual payment may include escrow items.