This is a mortgage calculator designed to figure the savings when you prepay your mortgage by making your payments every two weeks instead of monthly. This cool calculator will help you see the savings.
The goal of every home owner is to have your home paid off early. So I put this biweekly payment calculator here to kind of help you see into the future. Even if you do not plan to stay in the house the remainder of your life, it's still a good idea to follow a plan like this.
By doing so, you kind of force a savings account on yourself. The only time you'll be able to get access to this equity is when you sell the property, take out a refinance loan or equity line of credit. Try to avoid doing this if you can.
Because later when you sell the house, now you have more cash for a down payment on the next home you buy. Do this long enough, within 10-20 years you could be paying cash for a house rather than getting a mortgage.
Want to figure how much you can save if you made biweekly payments? This special calculator estimates your interest savings when you make two payments a month instead of one. In a sense you could call it a loan payoff calculator. Why would I say that?
Let me explain how the biweekly payment works.
The first 7 fields below you'll enter data that you should already know. No matter if your already in the home or just planning to buy, this calculator can be helpful.
1) In the first box, enter the beginning loan amount of your mortgage.
2) Put your interest rate in here.
3) Use the drop down box and enter the original term of the loan in months. Most people have 30 years.
4) Enter the total monthly payment including taxes and insurance. This number will come from your good faith estimate or monthly mortgage statement.
5) If you have already made some payments on this mortgage, enter the number of payments made here. If it's a new mortgage and you're just checking the numbers, enter a zero.
6) Now enter the date the next payment is due. If you're just now buying a house, put the date of your first payment.
7) Now if you can add a little money each month enter that figure here. $100 extra a month along with paying your mortgage every two weeks will really reduce your balance quickly.
Last, hit the compute button and all the figures will show up in the boxes below. Or you can click reset and start all over if you like.
When you prepay by paying your mortgage biweekly, you will pay off your loan quicker and save a substantial amount of interest. This is done by taking your monthly payment and dividing it in half. Pay that half portion every two weeks.
Let me give you an example....If your payment was $1000 a month, you would pay $500 every two weeks. Perhaps you're wondering, how does this prepay my mortgage when I'm paying the same amount?
Well when you pay 1/2 of your mortgage payment every two weeks (biweekly), you will have essentially made 13 monthly payments in a year instead of 12. This is an almost painless way to prepay your mortgage. You're making extra payments without hardly feeling it.
When you use this biweekly payment calculator, you may find yourself acting like the little stick man in the picture up above. He's excited to see his savings! Once you have the numbers you like in there, you can click on the create button in any or all of the columns and you will have a amortization schedule pop up and you can print it off.
If you want to see how much you would save, just plug in the numbers and this biweekly payment calculator will show you the money!
Give it a try, the savings will surprise you.
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