1. What is Biweekly Loan Amortization?

Biweekly loan amortization refers to paying half of your monthly mortgage payment every two weeks, resulting in 26 half-payments per year (equivalent to 13 full monthly payments). This method helps pay off loans faster and reduces total interest paid.

2. How Does the Calculator Work?

The calculator uses the biweekly payment formula:

Where:

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

Explanation: The formula calculates the fixed payment amount required to fully amortize the loan over the specified term with biweekly payments.

3. Benefits of Biweekly Payments

Details: Making biweekly payments can shorten your loan term by several years and save thousands in interest, as you effectively make one extra monthly payment each year.

4. Using the Calculator

Tips: Enter the loan principal amount in USD, annual interest rate in percent, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: Is biweekly better than making extra payments?
A: Biweekly is more systematic, but lump sum extra payments can be more flexible if you have irregular income.

Q3: Do all lenders accept biweekly payments?
A: Most do, but some may charge setup fees. Always check with your lender first.

Q4: How does this compare to weekly payments?
A: Weekly payments would pay off the loan even faster, but the savings diminish compared to the additional effort.

Q5: Can I switch to biweekly after starting monthly?
A: Yes, you can usually change your payment schedule by contacting your lender.