Biweekly Mortgage Calculation - How much would your loan cost if you made payments every two weeks?
|Change the below fields as desired:|
|Principal Loan Balance: 100,000.00|
|Annual Interest Rate (%): 5%|
|Amorization Length (years): 30 years|
Where the final summary is
Biweekly Payment: $233.74
As you can see by the bottom line in my commparison of a $100,000. mortgage over 30 years you would pay off your mortgage at 25 years. That's great but few people stay that long. What impressed me was the extra dollars earned in 5 years!! All other things being equal if you sold your home after 5 years you would have $2777.00 more in your pocket paying biweekly instead of monthly. After 10 years-you would gain $6235.00. Worth comsidering.
Use auto debit or bank on line and it won't even cost you an extra postage stamp. You do need to let your mortgage company know that you want to do this and you are on your way to saving.