Standard vs. Bi-Weekly

Input Information
Loan Information
Amount : ($)
Interest Rate : (%)
Length : (Years)
Interest compounded :
Your Tax Rate
Tax Rate : (%)

Financial Analysis (Switch to Plain English)
  Standard Bi-Weekly
Length : 30 Yrs 0 Mts 24 Yrs 7 Mts
Time Saved : 5 Yrs 5 Mts
Bi-Weekly Payment : - $739.42
Monthly Payment : $1,478.84 $1,602.08
Total Interests Paid : $282,383.99 $222,234.36
Interest Savings : $60,149.63
Tax Savings : $73,419.84 $57,780.93
Tax Saving Losses : $15,638.90
Total Benefit
(Int. Savings - Tax Saving Losses) :
$44,510.73
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 24 years and 7 months. This will save you 5 years and 5 months. But, the savings doesn’t end there.

If you took out a $250,000.00 loan with an interest rate of 5.875% and your federal tax rate is 26.000%, you can expect to pay $1,478.84 per month, while a bi-weekly payment plan will call for a payment of $739.42 every other week. As a result, you will pay only $222,234.36 in interest with the bi-weekly schedule rather than $282,383.99 with the standard payment plan. While this will result in a loss of $15,638.90 in tax benefits, you will still save a total of $44,510.73 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 own financial advisor.