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 Interest 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) :
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. By refinancing your current mortgage, the finance charges on the new loan may be higher over the life of loan as compared to continuing to pay your current mortgage. Please consult your personal financial advisor.