Accelerated Biweekly Mortgage Calculator Loan Amount: Loan Term (Months) Monthly Interest Rate The Bi-Weekly Payment Amount is: /* Calculates the bi-weekly payment of an accelerated biweekly mortgage */ function calculateBiWeeklyPayment() { var loanAmount = document.getElementsByName("loanAmount")[0].value; var loanTerm = document.getElementsByName("loanTerm")[0].value; var monthlyInterestRate = document.getElementsByName("monthlyInterestRate")[0].value; var biWeeklyInterestRate = monthlyInterestRate/24; var biWeeklyPaymentAmount = loanAmount * biWeeklyInterestRate / (1 - Math.pow(1 + biWeeklyInterestRate, -loanTerm)); document.getElementById("result").innerHTML = biWeeklyPaymentAmount.toLocaleString('en-US', { style: 'currency', currency: 'USD' }); } How Accelerated Biweekly Mortgages Work Accelerated biweekly mortgages are an increasingly popular payment option for those wanting to become homeowners. They are similar to traditional biweekly mortgages in the way that payments are made every two weeks, however, with accelerated biweekly mortgages the payments are made half of the traditional mortgage payment every two weeks. This gives the homeowner the benefit of owning their home significantly faster and saving money in the long run. The Benefits of an Accelerated Biweekly Mortgage One of the main benefits of an accelerated biweekly mortgage is that the homeowner pays off the loan on an average of six to seven years quicker. Depending on the loan amount and interest rate, the savings could amount to tens of thousands of dollars that can be pocketed rather than paid into interest. This is because although payments are made every two weeks, the payments are half of the traditional monthly payment amount. This means that more money is being put towards the principal each month, leading to rapid payoff. For example, if someone has a loan amount of $300,000 with a 7% interest rate and a 25-year mortgage term, the borrower will save approximately $118,993.00 in total interest paid over the life of the loan with an accelerated biweekly mortgage versus a traditional monthly mortgage. The Different Types of Accelerated Biweekly Mortgages When it comes to accelerated biweekly mortgages, there are two types of payment plans available to choose from. Firstly, there is the one-time up-front fee option, where the homeowner will pay a one-time fee for the accelerated biweekly mortgage plan. Secondly, there is the more cost-effective option of no up-front fee, where the homeowner does not pay any up-front fee and instead pays slightly higher monthly payments. The one-time up-front fee option allows the homeowner the ability to begin taking advantage of the shortened loan term faster than the no up-front fee option. This is because the homeowner pays the one-time fee up front and then the accelerated biweekly mortgage payments begin immediately for the rest of the loan term. The no up-front fee option is more cost-effective in that there is no one-time up-front fee to pay, however, it takes the homeowner longer to start taking advantage of the shortened loan term. This is because the borrower has to make the higher payments for a set number of payments before the accelerated biweekly payments start. Finding an Accelerated Biweekly Mortgage Calculator When searching for an accelerated biweekly mortgage calculator it is important to shop around and compare the different offerings. This is because different lenders offer different types of calculators, and some may not be as accurate or updated as others. It’s a good idea to start by searching online, as there are many websites and online calculators that can be used to find the right tool. As well, some lenders offer their own calculators on their websites. It is important to know what type of calculator the lender is offering in order to make sure it is a quality tool. Once a calculator is selected, it is important to input the correct figures and accurate information in order to get the best results. Using an Accelerated Biweekly Mortgage Calculator Once the correct calculator has been found, it is time to figure out the information that needs to be inputted into the calculator. This includes the loan amount, interest rate, mortgage term and the type of payment plan. Once all of these have been inputted the calculator should be able to calculate the amount of money the homeowner will save in interest with an accelerated biweekly mortgage. Additionally, the calculator should also be able to tell the homeowner how long it will take to pay off the loan with the accelerated biweekly payments, as well as how much each payment will be. This should give the homeowner a good idea of what can be expected from an accelerated biweekly mortgage. The Bottom Line Accelerated biweekly mortgages can help homeowners save money in the long run and pay off their mortgage quicker. However, it is important to choose the right payment plan and calculator in order to make sure it is the best option for the particular homeowner’s situation. Shopping around and finding the right calculator will help ensure that the best deal is found.