Bi-Weekly Mortgage Calculator
Determine your bi-weekly mortgage payment (every two weeks) based on mortgage amount and interest rate (for our friends in Australia, Canada and Europe). The graph below the table shows how the breakdown between principal and interest payments changes and how the principal balance gets paid down over the term of the mortgage. It is important to highlight that a bi-weekly mortgage gets paid off faster than its stated term. For example, a bi-weekly mortgage with a 30 year term gets paid off in year 26. This is because by making a mortgage payment every two weeks you pay off the principal balance faster than you do if you make a monthly payment
Monthly Housing Payments
- Loan Type
What Borrowers Should Know About a Bi-Weekly Mortgage
Bi-Weekly Mortgage Basics
With a bi-weekly mortgage, the borrower makes payments every two weeks instead of once a month. With a bi-weekly mortgage you make 26 payments over the course of year as compared to twelve monthly payments for a standard mortgage. Because you make payments every two weeks the required bi-weekly mortgage payment is half the amount of a monthly mortgage payment. For example, if the required monthly mortgage payment is $3,000, the bi-weekly payment is $1,500.
How a Bi-Weekly Mortgage Saves You Money
A bi-weekly mortgage pays down your mortgage faster for two reasons. First, true bi-weekly mortgages amortize every two weeks, which means the principal balance is reduced and the required interest payment is caluclated every two weeks instead of monthly. Second, because 26 bi-weekly mortgage payments equals 13 monthly mortgage payments you effectively make one extra payment each year with a bi-weekly mortgages. Making an extra payment enables you to pay down your mortgage balance faster, or accelerate your mortgage, which reduces the length of your mortgage and saves you thousands of dollars in interest expense over the life of your loan. For example, depending on the interest rate, a bi-weekly mortgage is generally four-to-five years shorter than a monthly 30 year mortgage, which means you save yourself up to five years in mortgage payments.
Bi-Weekly Mortgages in the U.S.
Bi-weekly mortgages are most popular in Canada and Australia and are very uncommon in the U.S. U.S. lenders typically do not accept bi-weekly payments because they make more money with a regular monthly mortgage. Borrowers who want to change their monthly mortgage into a bi-weekly mortgage should contact their lender to determine if they can set-up a bi-weekly payment schedule. While most 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 which reduces your mortgage balance. Borrowers, however, do not need a special lender program and should make the extra payment on their own instead of wasting money on unnecessary lender fees.
Beware of Bi-Weekly Mortgage Scams
Some companies advertise bi-weekly mortgage 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 payments from the borrowers. In most cases these companies do not make true bi-weekly payments for borrowers and instead make a single extra monthly payment per year. Borrowers do not need to pay a company to implement a bi-weekly mortgage program or make an extra monthly payment on their behalf. Borrowers should be weary of bi-weekly mortgage services and avoid fraudulent companies.
More FREEandCLEAR Mortgage Resources
Review our comprehensive explanation of how a bi-weekly mortgage works including how it saves you money compared to a monthly payment mortgage
Use our bi-weekly mortgage acceleration calculator to determine how you can reduce the length of your mortgage and save thousands of dollars in interest expense by overpaying a bi-weekly mortgage
Understand how you can apply mortgage acceleration to reduce your loan term and shave monthly payments off of your mortgage
Compare mortgage rates and fees from top lenders near you. Comparing proposals from multiple lenders is the best way to find the mortgage with the lowest rates and fees