In an Accelerated Bi-weekly plan, each bi-weekly payment would be 1/2 of 581.60 or $290.80.
The total payments for the year would be 7560.80. The result is that by the end of a year you will have paid the equivalent of one extra monthly payment towards the principal.Įxample: A 100,000 mortgage at 5% interest, compounded semi-annually, with an amortization period of 25 years, results in a monthly PI (principal + interest) payment of $581.60 (rounded). By tradition, the 'accelerated bi-weekly' payment is defined as 1/2 a normal monthly payment. The first thing to realize is that 'accelerated' means that rather than a normal bi-weekly payment, you are also making an extra payment on the principal. This calculator allows you to analyze the effect of an Accelerated Bi-Weekly payment plan, a common type of mortgage repayment plan.
