Mortgage is a type of credit that is typically backed by real property via a mortgage memo as a legal proof. Mortgage is considered as secure way because it gradually reduces the amount of principal in the fixed installment. It enables you to pay your loan back in adjusting monthly installments. Biweekly mortgage is one of the many types of mortgage programs. Biweekly mortgage can dramatically cut your interest cost therefore it is considered as safe way for the repayment of loans. Biweekly mortgage let the person to split the total amount of imbursement in every two weeks. Different finance related companies and lenders often support biweekly mortgage because it can divide your whole payment into 26 installments that enable you to pay principal down payment at faster rate.
Here is preview of a comprehensive Biweekly Mortgage Amortization Sheet Template,
Tips to Design Biweekly Mortgage Sheet
For your convenience, I am going to share some tips to design biweekly mortgage sheet so that you can personally estimate your loan amount and payment period:
- In first step, you have to decided type of twice payment on monthly basis that is convenient for you and mortgage holder. You can choose from bimonthly, typical biweekly, true biweekly or prepayment of ½ month. Every type of payment requires different amount of time and involves different amount of interest rate.
- Biweekly schedule will be best for you if you are interest to reduce the amount of interest on loan because it is convenient, effective and most accepted way to reduce the interest amount on total loan.
- Talk to your lender to know about monthly finance imbursement and then split your amount into half to pay it on biweekly schedule. It will help you to divide your loan into 24 equal payments right through the year.
- Some lenders require you to prepare the biweekly payment schedule but some offer this service and facilitate you with a pre designed payment schedule but you are always required to do it personally in order to avoid any future problem.
- You have to be extra careful while prepare biweekly mortgage sheet because sometimes lenders hold the funds until the date of normal payment and requires full amount as normal payment. It is your responsibility to check the credit transactions write after the payment.
- If you ignore above mentioned point then there is no way to escape from additional payment so do this work smartly. Crediting the payments instantaneously will help you to reduce the principal amount and interest amount.
Formula for Biweekly Mortgage Sheet
Note down your principal amount in the sheet and then calculate your biweekly mortgage with the help of following formula:
Take annual percentage rate and divide it with 26 to get accurate interest rate for the payment period. For a 40 year, $250,000 mortgage at 8 percent APR:
0.08/26 = 0.0031
If you want to calculate number of payments then you have to multiply 26 with total number of years:
40 * 26 = 1040
Now use following payment equation to calculate amount of payment:
P = L[c(1 + c)^n]/[(1 + c)^n – 1]
This will help you to prepare a complete biweekly mortgage sheet and help you to pay your loan amounts without any extra expense.
Here is download link for this Biweekly Mortgage Amortization Sheet Template,