Calculator available to show mortgage term reduction ?

[Vaughan Moody]

Can anyone point me towards an online calculator that will show how much sooner we would pay off our mortgage if we divided our monthly repayment amount by two and paid that amount (half of a monthly amount) every two weeks, instead of paying the monthly amount once a month?

Thanks in advance!

[Chris Seveney]

Quote from @Vaughan Moody:

Can anyone point me towards an online calculator that will show how much sooner we would pay off our mortgage if we divided our monthly repayment amount by two and paid that amount (half of a monthly amount) every two weeks, instead of paying the monthly amount once a month?

Thanks in advance!

 google bimonthly mortgage payment calculator

[Kyle Merryman]

Quote from @Vaughan Moody:

Can anyone point me towards an online calculator that will show how much sooner we would pay off our mortgage if we divided our monthly repayment amount by two and paid that amount (half of a monthly amount) every two weeks, instead of paying the monthly amount once a month?

Thanks in advance!

Hi there, I don't know that you really need to do that, just apply the extra as principle when your monthly payment is due. Here is a good mortgage payoff calculator that lets you apply extra payments to see how you can pay off your mortgage and save on interest. - Hope this helps, cheers!

Mortgage Payoff Calculator

[Bill B.]

Mortgages in the US are a particular beast. Their interest isn’t calculated daily like every other loan you’ll ever have. You save NOTHING by making bi monthly payments. (You would save interest on a car loan, credit card, etc.) You save SOMETHING because you make 26 payments (or 13 regular payments per year instead of 12. ). 

The problem is you don’t make any “extra payments” until 6 months in when you make your first one. You are 10X better off just paying 8.3333% extra every month. (The same amount of payment $’s but you actually start saving interest right away.)

You can find 100 websites/apps for calculating savings from paying extra on your mortgage. 

[Jeff S.]

@Vaughan Moody if you make a payment every other week you will make 13 payments in a year so one extra payment. You can also add 1/12th of a payment each month and accomplish the same thing. Bimonthly is not the same thing as every other week. Bimonthly might make a difference if your bank bothers to calculate it that way but I doubt you will notice a difference.