Have you ever considered how much money you can save from mortgage payments by choosing a bi-weekly payment plan? In a bi-weekly plan you will have to make payment every two months; means you will pay almost half of your monthly payments. Therefore, you can make 26 payments every year instead of 24 which is equivalent to 1 additional monthly payment and thus reduce the duration of fully repaying the amount. ACalculator will show you exactly how much this facility can save your money.
Accelerated weekly and bi-weekly payments
This calculator analyzes your weekly calculation by considering 52 weeks in a year or 26 payments. The bi-weekly payment is calculated in an accelerated way by equally dividing your monthly payment by two. So, your normal yearly (12 months) payment is converted to 24 payments. At the end, you pay 2 additional bi-weekly payments which are equal to one additional monthly payment. Actually, these last two extra payments are the reason your term length are reduced.
The value of your home appraised by the creditor.
The agreed rate of interest on the mortgage contract.
The term length required to fully pay off the amount if it was a monthly payment instead of bi-weekly. Normally, banks offer amortization of twenty or twenty five years for mortgages.