15 Year Bi Weekly Mortgage Calculator

A 15-year bi-weekly mortgage calculator helps you determine your mortgage payments when making payments every two weeks instead of monthly. This approach can help you pay off your mortgage faster and save on interest.

What is a bi-weekly mortgage?

A bi-weekly mortgage is a loan repayment schedule where payments are made every two weeks instead of monthly. This means you'll make 26 payments per year (instead of 12) over the life of your loan.

The bi-weekly payment amount is typically about 1/26th of the loan amount, rather than 1/12th as with monthly payments. The extra payments can help reduce the principal balance faster and save on interest over time.

Most lenders require that bi-weekly payments be made through automatic withdrawal from your bank account. This ensures consistent payments and proper accounting.

How to calculate bi-weekly mortgage payments

The calculation for bi-weekly mortgage payments follows these steps:

Determine the annual interest rate and divide by 26 to get the bi-weekly interest rate
Calculate the bi-weekly payment using the loan amount, bi-weekly interest rate, and number of payments (26 × loan term in years)
Compare the bi-weekly payment to the monthly payment to see the difference

Bi-weekly payment formula:

Payment = P × (r × (1 + r)^n) / ((1 + r)^n - 1)

Where:

P = Principal loan amount
r = Bi-weekly interest rate (annual rate / 26)
n = Total number of payments (26 × loan term in years)

The calculator on this page uses this formula to determine your bi-weekly payment amount.

Benefits of bi-weekly mortgage payments

There are several advantages to making bi-weekly mortgage payments:

Faster loan payoff: The extra payments reduce the principal balance more quickly
Lower interest costs: Paying more each period reduces the total interest paid over the loan term
Potential tax benefits: Some jurisdictions offer tax deductions for mortgage interest and principal payments
Consistent cash flow: Regular payments help maintain a steady budget

However, bi-weekly payments may not be suitable for everyone. You should consider your financial situation and discuss with your lender before switching to this payment schedule.

Worked example

Let's calculate a bi-weekly mortgage payment for a $200,000 loan with a 4% annual interest rate over 15 years:

Annual interest rate = 4% = 0.04
Bi-weekly interest rate = 0.04 / 26 ≈ 0.001538
Number of payments = 26 × 15 = 390
Using the formula: Payment = $200,000 × (0.001538 × (1 + 0.001538)^390) / ((1 + 0.001538)^390 - 1)
Calculated payment ≈ $945.42 per bi-weekly period

For comparison, a monthly payment for the same loan would be approximately $1,250. The bi-weekly payment is about 25% lower, helping you pay off the loan faster.

Frequently Asked Questions

Can I switch from monthly to bi-weekly payments?: Yes, but you should check with your lender first. Some lenders may require you to refinance or have specific requirements for switching payment schedules.
Will bi-weekly payments save me money?: Yes, bi-weekly payments typically save money because you're paying more each period, which reduces the total interest paid over the life of the loan.
How do I set up bi-weekly payments?: Most lenders require automatic withdrawals from your bank account. You'll need to set this up through your financial institution and notify your lender.
Can I make extra payments with bi-weekly payments?: Yes, you can make additional payments at any time. These will go directly toward reducing your principal balance and saving on interest.
What if I miss a bi-weekly payment?: Missing a payment could result in late fees and may affect your credit score. It's important to set up automatic payments to avoid this.