Bi-Weekly Payment Calculator for an Existing Mortgage
Bi-weekly Payment Calculator
Bi-weekly payments can save your money by accelerating the term length of mortgage repayment. Suppose you have entered into a mortgage loan contract with a payment method other than bi-weekly and now want to move to the payment accelerating bi-weekly system. This calculator, in this case, will find out the bi-weekly payment and bi-weekly total interest for any existing mortgage loan.
The bi-weekly payment mechanism considers your weekly calculation by considering 52 weeks in a year or 26 payments. The amount is calculated in an accelerated way by dividing the monthly payment by 2. So, the actual yearly (12 months) payment is integrated into 24 payments. At the end, you pay 2 additional bi-weekly payments which are equal to one additional monthly payment. Fundamentally, these last two extra payments are the reason your term length are reduced and interest expenses are saved.
Total value of the existing mortgage.
Annual interest rate charged on this existing mortgage.
Original mortgage term
The actual number of years it would take you to fully pay off the loan. In US the mortgage term can vary up to 40 years.
First payment date
The initial date of mortgage payment. This is required to find out the remaining balance as well as remaining time to pay that balance.
Monthly escrow amount (optional)
This field is required only if you have monthly due amount of escrow. In this bi-weekly payment mechanism, you will pay 50% of the monthly payment every two weeks.
Monthly Prepayment amount (optional)
Monthly amount that will be paid early. Accelerated bi-weekly payment is an indirect way of saving interest payment by reducing term length. With monthly prepayments, you can directly influence your savings.