When you are trying to get mortgage debt under control, a biweekly mortgage might give you a boost to get your home loan back under control. A bi weekly mortgage calculator can help you calculate the length of time before your loan is repaid.Biweekly Mortgage Benefits
A mortgage payoff calculator may illustrate how much you will save when you use a biweekly payment plan, but recognizing all of the benefits of paying for your mortgage every two weeks can help you determine if it is the right choice for your plans.
The benefits of the payment plan include:
- Improved budgeting by planning a payment that coincides with your paycheck
- Reduced interest payments over the life of the loan
- Faster repayment periods
- Making additional payments on the mortgage each year
According to the New York Times, repaying your mortgage loan on a biweekly schedule means that you are making 26 payments each year. Instead of paying 12 months into your repayment plan, you are actually paying 13 months into the plan. That extra payment each year adds up quickly and reduces the life of your loan by several years. It also means that you are paying a significantly lower amount in interest by the time your mortgage is repaid because that extra payment is going straight to the principle of your loan.
Reading the Repayment DetailsAlthough a mortgage payoff calculator will suggest that you can repay the loan 6 to 8 years early, Bank Rate suggests that you read through the details of your mortgage to ensure that the plan is appropriate for your situation. Some lenders may charge additional fees if you decide to use a biweekly payment plan. Even if your lender charges a fee, a bi weekly mortgage calculator is not lying. You can still benefit from that extra payment each year. You are still reducing the repayment period by 6 to 8 years and you are getting your loan under control. Repaying your mortgage does not necessarily mean that you must follow the traditional route of making a single monthly payment. Following a biweekly repayment schedule can provide the opportunity to organize your budget plan while chipping away at your debt.