8 votes

How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?

It depends on how the loan is set up and the lender's policy towards early payments. If the loan is set up with a monthly payment then the payment amount can be computed based on that formula where n=...
D Stanley's user avatar
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5 votes

How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?

Payment = [P*(r / n)(1 + r / n)^nt] / [(1 + r / n)^n*t - 1] where n = 12, P is the loan, and r is the interest rate. If the periodic rate is given as r / n with n = 12 months, this implies that the ...
Chris Degnen's user avatar
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3 votes

How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?

A mortgage is normally calculated based on monthly payments, that is, 12 payments a year. If you get biweekly payments, that is 26 payments a year. Usually each payment is half the monthly payment. So ...
Jay's user avatar
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1 vote

40-yr mortgage loan with a 30-yr balloon payment

You will need to pay the balance on the loan, remaining principal (probably most of it if this is a balloon loan) plus any interest that has not been paid along the way and instead was rolled into the ...
keshlam's user avatar
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1 vote

How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?

Math guy here. You've confused yourself with that complicated formula, because it is a derivation of the central formula, and the derivation requires certain assumptions to be made. The core formula ...
Harper - Reinstate Monica's user avatar
1 vote

What are the advantages of paying off a mortgage quickly?

Retirement Timing I'm ten years late to this party, but no one has mentioned retirement timing and I feel like that may be important. The size of the nest egg you need to retire is directly ...
codeMonkey's user avatar
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