Note: In keeping with the theme of this calculator, the extra payment for the biweekly loan will be 1/2 the amount you enter. Or you may want to see how much the biweekly loan will save over the conventional loan when you add extra payments to get an additional saving boost. The idea here is, you may want to compare a debt paid biweekly without additional payments to a debt paid monthly, where you do plan to make extra payments.
To see how much you'll save, you may apply the extra payment to either the monthly loan or the biweekly loan, or both.
#Mortgage calculator extra payment series#
This calculator supports both lump sum or one-time extra payments as well as a series of additional payments. The "Loan Summary" shows how much interest the biweekly loan saves the borrower.Įven making one extra payment will save you interest. Doing this is called prepaying principal. When you decrease the amount owed, you lower the amount of interest due. If you have the available cash flow, you can make extra payments which are used to reduce the loan balance. This calculator will tell you precisely that.
#Mortgage calculator extra payment free#
So the mortgage holder is paying more per year (the amount equal to one monthly payment), and the benefit to them for doing so is they'll be debt free sooner and the total interest paid will be lower. To put some numbers on this, if the monthly payment is $2,000, the mortgage holder will pay $24,000 a year when paying monthly. That's the same as making 13 monthly payments. Since there are 52 weeks in a year, you'll make 26 regular payments when paying every other week. The payment amount for a biweekly mortgage is one-half the monthly amount. Let's do the arithmetic! Don't worry it's elementary! Additionally, while you'll naturally make more payments with a biweekly loan, the loan will be paid-in-full sooner than with a monthly payment plan. The reason why you might want to pay a loan every other week is that you'll save on interest charges over its term. However, when your debt is a biweekly loan, you must pay every other week. What is a biweekly mortgage, and why would I want one?īorrowers usually pay mortgages monthly.
0 kommentar(er)
