Mortgage Rate Calculator

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If you are looking for ways to pay off your mortgage quicker, you have three basic options; reduce your amortization period, increase your monthly mortgage payment or change the way you make your payments. Bi-weekly mortgage payments might be just the ticket, not to be confused with semi-monthly mortgage payments (24 payments per year), accelerated bi-weekly mortgage payments (26 payments per year) will not only pay your mortgage off quicker, but it is guaranteed to save you a significant amount of money over the term of your mortgage.

If you you have a mortgage of $100,000, an amortization period of 25 years and an interest rate of 5.00%, your monthly mortgage payment would be $584.59 and your total payments for a year would be ($584.59 x 12) $7015.08. To understand the savings accelerated bi-weekly mortgage payments can make, take the monthly mortgage payment of $584.59 and divide it by two ($584.59 / 2 = $292.30). Then take that payment and multiple it by 26 to arrive at your total of all payments for the year ($292.30 x 26 = $7,599.80).

Using the monthly mortgage payment plan, you have made a total of $7015.08 worth of payments for the year, while using the accelerated bi-weekly mortgage plan you have made $7,599.80 worth of payments, a difference of $584.72. Basically with accelerated bi-weekly mortgage payments, you are re making one additional monthly payment in the year. Using this example, you would reduce the amortization on your $100,000 mortgage from 25 years to just over 21 years and a total savings on interest, over the life of the mortgage, to just over $12,000. Weekly payments will also save you a significant amount of money.

Any questions or comments about this JavaScript Mortgage Rate Calculator may be directed to Leonard Whistler at len.whistler@gmail.com

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