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Bi-Weekly Mortgage Calculator
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This calculator shows you possible savings by using an accelerated bi-weekly mortgage
payment on your existing mortgage. By paying ½ your monthly payment every
two weeks, each year your mortgage company will receive 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.
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Definitions
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- Bi-weekly payments
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Bi-weekly savings are achieved by simply paying ½ your monthly mortgage payment
every two weeks and making 1 ½ times your monthly mortgage payment every sixth month.
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
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The total dollar amount for this mortgage.
- Interest rate
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The interest rate on this mortgage.
- Original mortgage term
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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.
- First payment date
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The date your mortgage started. We will use this date to calculate the time and
balance remaining on your loan.
- Monthly escrow amount (optional)
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If you pay escrow, this is the monthly escrow amount due. With the bi-weekly program
½ of this amount will be paid every two weeks.
- Monthly Prepayment amount (optional)
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Prepayment increases your savings even more. An additional payment is strictly optional.
If you are also prepaying, please include your monthly prepayment amount. With the
bi-weekly program ½ of this amount will be debited every two weeks.
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Information and interactive calculators are made available
to you as self-help tools for your independent use and are not intended to provide
investment advice. We can not and do not guarantee their applicability or accuracy
in regards to your individual circumstances. All examples are hypothetical and are
for illustrative purposes. We encourage you to seek personalized advice from qualified
professionals regarding all personal finance issues.
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