Standard vs. Bi-Weekly

Mortgage Calculators » Standard vs. Bi-Weekly
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  Standard Bi-Weekly
Length : 30 Yrs 0 Mts 24 Yrs 1 Mts
Time Saved : 5 Yrs 11 Mts
Bi-Weekly Payment : - $1,106.12
Monthly Payment : $2,212.24 $2,396.59
Total Interest Paid : $446,405.71 $342,167.99
Interest Savings : $104,237.72
Tax Savings : $116,065.48 $88,963.68
Tax Saving Losses : $27,101.81
Total Benefit
(Int. Savings - Tax Saving Losses) : 		$77,135.91
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 1 months. This will save you 5 years and 11 months. But, the savings doesn't end there.

If you took out a $350,000.00 loan with an interest rate of 6.500% and your federal tax rate is 26.000%, you can expect to pay $2,212.24 per month, while a bi-weekly payment plan will call for a payment of $1,106.12 every other week. As a result, you will pay only $342,167.99 in interest with the bi-weekly schedule rather than $446,405.71 with the standard payment plan. While this will result in a loss of $27,101.81 in tax benefits, you will still save a total of $77,135.91 with the bi-weekly plan.
DISCLAIMER: There is NO WARRANTY, expressed or implied, for the accuracy of this information or its applicability to your financial situation. Please consult your own financial advisor.