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!|
|25 Years, 4 Months||$58,688||$29,106 in interest and 4.5 years of payments|
|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.