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This calculator shows you possible savings by using an accelerated bi-weekly mortgage payment. Bi-weekly payments accelerate your mortgage payoff by paying 1/2 of your normal monthly payment every two weeks. By the end of each year, you will have paid the equivalent of 13 monthly payments instead of 12. This simple technique can shave years off your mortgage and save you thousands of dollars in interest. Click on the "View Report" button to see your savings!
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Definitions
- Accelerated bi-weekly payments
- Accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming there are only four weeks in a month. We calculate an accelerated bi-weekly payment, for example, by taking your normal monthly payment and dividing it by two. Since you would pay 26 bi-weekly payments, by the end of a year you would have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands of dollars in interest and take years off of your mortgage.
- Mortgage amount
- The total dollar amount for this mortgage.
- Interest rate
- The interest rate on this mortgage.
- Mortgage term
- The number of years over which you would repay this loan if you made your normal monthly payment. The most common terms for mortgages are 15 years and 30 years.
- Bi-weekly prepayments
- If you wish to apply additional principal prepayments, enter the amount here. This is the amount bi-weekly that will be applied directly to your mortgage principal.
- Monthly impound payment
- If you pay your insurance or real estate taxes as part of your monthly payment, include that amount here. We will apply extra impound payments directly to your principal.
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