Mortgage Payoff Calculator
Compare a biweekly mortgage to a monthly mortgage payment
One popular strategy for paying off a home loan more quickly is to make biweekly payments. Use our biweekly mortgage calculator to determine how much money you can save using this approach over monthly payments.
How to use a mortgage payoff calculator
Start by entering your current loan balance – because even if you’ve been making monthly mortgage payments for a while, switching to a biweekly payment can still save you money. Then, enter the remaining term of your loan – or the full term if you’re considering biweekly payments from the start – followed by your mortgage interest rate.
The calculator will compare how long it will take to pay off your mortgage and how much total interest you will pay under each scenario.
How a biweekly mortgage payment works
Under a biweekly mortgage payment plan, you will make payments to your lender every two weeks instead of monthly. Each payment will represent half of your monthly payment. However, it’s important to note that this method will result in you making 26 payments each year, so you will have to budget accordingly.
When you pay half your mortgage amount biweekly, at the end of the year, you will have made 13 months’ worth of payments instead of 12. Not only does this lower the amount owed, but you will also save a bit on interest charges for the outstanding loan balance that would normally still be there until the end of the month.
How much you can save by switching to a biweekly mortgage payment
As an example, if you have a 30-year mortgage with a $150,000 loan balance and a 6% rate, you’ll pay off your loan in less than 25 years and save yourself more than $38,000 in interest. And you will have achieved it simply by paying half the monthly mortgage amount every two weeks.
What costs are included in a mortgage payment
When you make a monthly mortgage payment, your money goes toward:
- Principal balance – This is the amount remaining on your original loan amount, not including interest or other charges.
- Interest – The fee you are paying to borrow the money, paid as a percentage of your principal balance.
- Property tax – One month’s worth of your annual property tax is put in a mortgage escrow account, from which your lender pays property taxes when they are due each year.
- Homeowners insurance – As with your property taxes, one month’s worth of your annual premium is kept in escrow and paid by the lender annually.
- PMI and HOA – Additionally, if your mortgage requires private mortgage insurance (PMI), or if your property is part of a homeowners association (HOA) with annual fees, these costs may also be wrapped into your monthly payment.
Mortgage terms to keep in mind
- Amortization: The gradual repayment of a mortgage loan, both principal and interest, by installments.
- Balance: The outstanding amount of a loan that is yet to be paid.
- Biweekly: Paying one-half the monthly payment 26 (or possibly 27) times per year.
- Interest: The fee you’re paying to borrow the money, paid as a percentage of your principal balance.
- Term: The amount of time until a loan is fully due, used to calculate the monthly mortgage payments.
Looking for another term put in plain language? Visit the complete CrossCountry Mortgage Glossary.
Additional mortgage calculators
Buying or refinancing a home can be confusing – we want to make beginning the journey as simple as possible. We’ve developed easy-to-use tools that will help you compare your options, calculate your payment, see how much mortgage you can afford, understand your debt-to-income ratio, and discover answers to many of your homebuying questions.
Use our free, interactive calculators to start getting answers and take the next financial steps toward your goals:
