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Home » Exchange Calculators » Standard vs. Bi-Weekly

Standard vs. Bi-Weekly

Input Information
Loan Information
($)

(%)

(Years)




Your Tax Rate
(%)





Financial Analysis (Switch to Plain English)
Standard
Bi-Weekly

Length :
30 Yrs 0 Mts
25 Yrs 3 Mts

Time Saved :

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 don’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.