You can pay off your mortgage years earlier and owe less interest by dividing your monthly mortgage payments in half, and paying that amount every other week. By converting to bi-weekly payments, you essentially pay one extra payment toward your principal each year. Use our calculator to see the difference between bi-weekly and monthly payments.
These calculations are tools for learning more about the mortgage process and are for estimation purposes only. Payment shown does not include taxes, insurance, or mortgage insurance (if applicable). This does not constitute an offer or approval of credit. Contact a PrimeLending home loan officer for actual estimates.
For example, a Conventional fixed rate loan with a loan amount of $200,000, on a loan term of 360 months, with a credit score of 740+, down payment of 20%, and an interest rate of 3.375%, will result in an annual percentage rate of 3.452%. Rate pulled 6/18/20, rates change daily. Loans are subject to borrower qualifications, including income, property evaluation, and final credit approval.
Making bi-weekly payments rather than monthly payments allows you to pay one extra monthly payment () toward the principal each year. in interest, and will reduce the term of your loan from 30 years to XX.X years.