Standard vs. Bi-Weekly

You heard that bi-weekly payments can significantly decrease the time of mortgage payoff? Check it out with this calculator.
Loan Information
Loan Information
Amount : ($)
Interest Rate : (%)
Length : (Years)
Interest compounded :
Your Tax Rate
Tax Rate : (%)
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Financial Analysis (Switch to Plain English)
  Standard Bi-Weekly
Length : 30 Yrs 0 Mts 25 Yrs 11 Mts
Time Saved : 4 Yrs 1 Mts
Bi-Weekly Payment : - $596.77
Monthly Payment : $1,193.54 $1,293.00
Total Interest Paid : $179,673.77 $151,211.03
Interest Savings : $28,462.73
Tax Savings : $46,715.18 $39,314.87
Tax Saving Losses : $7,400.31
Total Benefit
(Int. Savings - Tax Saving Losses) :
$21,062.42
Plain English Help (Switch to Financial Analysis)

When you set up your mortgage payment repayment plan, you can choose between a standard repayment plan or a bi-weekly repayment plan. With the standard plan, it would take you 30 years to repay the loan while a biweekly plan will take 25 years and 11 months. This will save you 4 years and 1 months. But, the savings doesn't end there.

If you took out a $250,000.00 loan with an interest rate of 4.000% and your federal tax rate is 26.000%, you can expect to pay $1,193.54 per month, while a bi-weekly payment plan will call for a payment of $596.77 every other week. As a result, you will pay only $151,211.03 in interest with the bi-weekly schedule rather than $179,673.77 with the standard payment plan. While this will result in a loss of $7,400.31 in tax benefits, you will still save a total of $21,062.42 with the bi-weekly plan.

DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. Please consult your financial and/or tax advisor.