1. What is Mortgage Payment Acceleration?

Accelerated mortgage payments allow you to pay off your mortgage faster by making more frequent payments (bi-weekly or weekly) instead of monthly payments. This results in extra payments each year, reducing both the principal and the total interest paid.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( PMT \) — Regular monthly mortgage payment
• 1.0833 — Conversion factor for bi-weekly payments

Explanation: Bi-weekly payments are calculated as half the monthly payment multiplied by 26 (number of payments per year) divided by 12 (months).

3. Benefits of Accelerated Payments

Details: Accelerated payments can shave years off your mortgage and save thousands in interest. For example, a 30-year mortgage can often be paid off in 25 years or less with bi-weekly payments.

4. Using the Calculator

Tips: Enter your regular monthly mortgage payment amount and select your preferred accelerated payment schedule (bi-weekly or weekly).

5. Frequently Asked Questions (FAQ)

Q1: How much faster will I pay off my mortgage?
A: Typically 4-8 years faster on a 30-year mortgage, depending on your interest rate and payment amount.

Q2: Is there any downside to accelerated payments?
A: You'll have less cash flow flexibility since payments are more frequent. Ensure your budget can accommodate this.

Q3: Do all lenders offer accelerated payments?
A: Most do, but some may charge setup fees. Always check with your lender first.

Q4: How much interest can I save?
A: On a $300,000 mortgage at 4%, you could save $30,000-$40,000 in interest over the life of the loan.

Q5: Can I switch back to monthly payments?
A: Yes, most lenders allow you to revert to monthly payments if needed, though some may have restrictions.