Standard vs. Bi-Weekly

You heard that bi-weekly payments can significantly decrease the time of mortgage payoff? Check it out with this calculator.
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Financial Analysis (Switch to Plain English)
  Standard Bi-Weekly
Length : 30 Yrs 0 Mts 23 Yrs 11 Mts
Time Saved : 6 Yrs 1 Mts
Bi-Weekly Payment : - $810.75
Monthly Payment : $1,621.50 $1,756.62
Total Interest Paid : $333,738.29 $252,979.13
Interest Savings : $80,759.16
Tax Savings : $86,771.95 $65,774.57
Tax Saving Losses : $20,997.38
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 23 years and 11 months. This will save you 6 years and 1 months. But, the savings doesn't end there.

If you took out a $250,000.00 loan with an interest rate of 6.750% and your federal tax rate is 26.000%, you can expect to pay $1,621.50 per month, while a bi-weekly payment plan will call for a payment of $810.75 every other week. As a result, you will pay only $252,979.13 in interest with the bi-weekly schedule rather than $333,738.29 with the standard payment plan. While this will result in a loss of $20,997.38 in tax benefits, you will still save a total of $59,761.78 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 financial and/or tax advisor.