1. What is Biweekly Loan Payment?

A biweekly loan payment plan involves making half of your monthly mortgage payment every two weeks. This results in 26 half-payments per year (equivalent to 13 full monthly payments) instead of the traditional 12, helping you pay off your loan faster.

2. How Does the Calculator Work?

The calculator uses the standard loan formula adjusted for biweekly payments:

Where:

• \( P \) — Principal loan amount
• \( r \) — Biweekly interest rate (annual rate ÷ 26)
• \( n \) — Total number of biweekly payments (years × 26)

Explanation: The formula calculates the fixed payment amount required to pay off a loan over a specified term, accounting for compound interest.

3. Benefits of Biweekly Payments

Details: Making biweekly payments can reduce your loan term by several years and save thousands in interest. Adding extra payments further accelerates payoff and interest savings.

4. Using the Calculator

Tips: Enter the principal amount, annual interest rate, loan term in years, and any additional extra payment you plan to make with each biweekly payment.

5. Frequently Asked Questions (FAQ)

Q1: How much faster will I pay off my loan with biweekly payments?
A: Typically 4-8 years faster on a 30-year mortgage, depending on the interest rate.

Q2: Is there a downside to biweekly payments?
A: You'll have more frequent payments to manage, and some lenders charge fees for this service.

Q3: How do extra payments affect the loan?
A: Extra payments are applied directly to principal, reducing interest costs and shortening the loan term.

Q4: Can I switch back to monthly payments?
A: Most lenders allow you to change your payment schedule, but check with your specific lender.

Q5: How much interest can I save?
A: On a $300,000 loan at 4%, biweekly payments could save ~$30,000 in interest and pay off the loan 5 years early.