Bi-Weekly Refinance Calculator
Use our Bi-Weekly Refinance Calculator to determine if you can lower your payment by refinancing your bi-weekly mortgage. With a bi-weekly mortgage, you make a payment every two weeks instead of monthly which compounds the benefits of refinancing. Use our calculator to compare different mortgage amounts, rates and payments to determine if refinancing your bi-weekly loan saves you money.
How Our Bi-Weekly Refinance Calculator Works
To use our calculator, input your current bi-weekly payment and mortgage balance as well as your new loan amount. The calculator also includes the interest rate and length for your new mortgage so you can understand how these factors affect your new loan payment and total interest expense over your mortgage term.
The total interest cost for a bi-weekly loan is less than for a monthly mortgage because paying your mortgage every two weeks reduces the length of your loan by several years. A shorter mortgage means fewer payments and less interest expense.
Our Bi-Weekly Refinance Calculator also shows your savings compared to your current mortgage payment as well as how long it takes you to recoup your closing fees based on your savings. You should be able to recover your costs faster with a bi-weekly mortgage because you make more payments in a year -- 26 payments to be exact -- than you make with a monthly mortgage -- only twelve payments.
The more money you save and less time it takes you to recover your costs, the more financial sense it makes to refinance. If your closing expenses are too high or you cannot lower your bi-weekly payment enough, refinancing may not justify the cost.
What You Should Know About Refinancing a Bi-Weekly Mortgage
Reasons to Refinance a Bi-Weekly Mortgage
The most common reason to refinance a bi-weekly mortgage is to reduce your interest rate and lower your bi-weekly mortgage payment. In general, your new interest rate should be at least .750% lower than your current rate when you refinance. Reducing your interest rate by at least .750% should enable you to recover your closing costs within two and a half years of refinancing. You recover your closing costs a little with every bi-weekly mortgage payment you make because your new payment is lower than your old payment. You may also choose a "no-cost" refinance; however, this type of mortgage may cost you more in the long run because it requires you to pay a higher interest rate. Use our Bi-Weekly Mortgage Refinance Calculator to determine your bi-weekly savings, how long it takes to recover your closing costs and the total interest expense over the life of the loan.
Bi-Weekly Mortgages Are Hard to Find in the U.S.
True bi-weekly mortgages are not available in the U.S. as U.S. lenders do not accept bi-weekly payments due to system limitations and because make more money with a standard monthly mortgage. Borrowers who want to refinance into a bi-weekly mortgage should contact lenders to determine if they can set-up a bi-weekly payment schedule for their new loan. While most U.S. lenders do no accept bi-weekly payments some lenders market bi-weekly mortgage programs. Usually the lender does not actually set-up a true bi-weekly program for borrowers and instead applies one extra monthly payment per year. Applying an extra payment per year does reduce your mortgage balance but not at the same rate as a true bi-weekly mortgage. Bi-weekly mortgages are far more common in Canada, Australia and parts of Europe.
Be Alert for Bi-Weekly Mortgage Scams
Some companies and lenders advertise bi-weekly mortgage refinance programs that claim to save borrowers thousands of dollars. These companies charge borrowers upfront and monthly fees to change their monthly mortgage into a bi-weekly mortgage and collect bi-weekly mortgage payments from the borrowers. In most cases these companies do not make true bi-weekly payments for borrowers, because lenders do not accept them, and instead make a single extra monthly payment per year. Borrowers do not need to pay a company or lender to make an extra payment on their behalf -- borrowers can make an extra payment to the lender on their own for free. Borrowers should be aware of bi-weekly mortgage scams as these companies usually provide minimal value.
Consider Refinancing Into a Bi-Weekly Mortgage
If you have a monthly mortgage you should consider switching to a bi-weekly mortgage when you refinance. A bi-weekly mortgage enables you to reduce the length of your loan by several years which significantly reduces your total interest expense. A bi-weekly loan requires the equivalent of an extra monthly payment each year, so it has to work for your budget, but a bi-weekly mortgage can save you a lot of money in the long run. If you are deciding if you should refinance, it may be an opportune time to change your loan program as well.
More FREEandCLEAR Mortgage Resources
Review our in-depth overview of a bi-weekly mortgage including how it reduces your mortgage term and saves you money compared to a regular 30 year mortgage with a monthly payment
Use our Bi-Weekly Mortgage Calculator to determine your bi-weekly payment, total interest expense over the life of the loan and pay-off date for a bi-weekly mortgage based on loan amount and interest rate
Review the top reasons to refinance your mortgage including to lower your mortgage rate, shorten your mortgage length or change your mortgage program
Compare mortgage refinance rates and fees from top lenders near you. Comparing multiple lenders is the best way to find the mortgage with the lowest rate and fees when you refinance