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Standard vs. Bi-Weekly

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Amount :	($)
Interest Rate :	(%)
Length :	(Years)
Interest compounded :	Monthly Bi-Weekly
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Tax Rate :	(%)
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Financial Analysis (Switch to Plain English)

	Standard	Bi-Weekly
Length :	30 Yrs 0 Mts	25 Yrs 3 Mts
Time Saved :	4 Yrs 9 Mts
Bi-Weekly Payment :	-	$671.03
Monthly Payment :	$1,342.05	$1,453.89
Total Interests Paid :	$233,139.46	$189,734.44
Interest Savings :	$43,405.02
Tax Savings :	$60,616.26	$49,330.95
Tax Saving Losses :	$11,285.31
Total Benefit (Int. Savings - Tax Saving Losses) :	$32,119.72

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 25 years and 3 months. This will save you 4 years and 9 months. But, the savings doesn’t end there. If you took out a $250,000.00 loan with an interest rate of 5.000% and your federal tax rate is 26.000%, you can expect to pay $1,342.05 per month, while a bi-weekly payment plan will call for a payment of $671.03 every other week. As a result, you will pay only $189,734.44 in interest with the bi-weekly schedule rather than $233,139.46 with the standard payment plan. While this will result in a loss of $11,285.31 in tax benefits, you will still save a total of $32,119.72 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. Please consult your own financial advisor.

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