How much money you could save switching to bi-weekly payments?
With Bi-weekly Payments:
- 26 payments are made each year rather than 12, resulting in one full extra payment to the loan every year
- Principal balance is reduced every two weeks instead of monthly
- The lifespan of your loan is reduced.
The chart illustrates your savings by using the bi-weekly payment option.
Home Loan Amount | Payment | Re-paid In | Interest | Savings! |
---|---|---|---|---|
$100,000 | $521.65 | 30 Years | $87,794 | N/A |
$100,000 | $261.00 Bi-weekly |
25 Years, 4 Months | $58,688 | $29,106 in interest and 4.5 years of payments |
$100,000 | $300.00 Bi-weekly |
19 Years, 9 Months | $42,200 | $45,594 in interest and over 10 years in payments |
All calculations are based on a 30-year fixed rate home loan at 4.75%APR. This is for educational purposes only.