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.
Making bi-weekly payments rather than monthly payments allows you to pay one extra monthly payment ($954) toward the principal each year. Bi-weekly payments will save you $20,097 in interest, and will reduce the term of your loan from 30 years to 26.1 years.
Pay off your home earlier with bi-weekly 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 the terms purchase price of $300,000, on a loan term of 360 months, down payment of 20%, and an interest rate of 3.125%, will result in an annual percentage rate of 3.188% with $1900 in APR fees. Rate pulled 09/16/21, rates change daily. Loans are subject to borrower qualifications, including income, property evaluation, and final credit approval.