Viewing a single comment thread. View all comments

Iwanttosee25 OP t1_j1zcj92 wrote

Reply to comment by DeluxeXL in Looking for a good amortization calculator by Iwanttosee25

Ah ok, didn’t know that, thought it was calculated constantly. So really the only way to shorten/pay less interest is making extra principle payments

1

Default87 t1_j1zcv08 wrote

Correct. The reason that biweekly payments shorten the duration is that there are 26 biweekly payments in a year, so if you do half of your monthly payment each time, you are effectively making 13 monthly payments per year instead of 12.

2

DeluxeXL t1_j1zcys3 wrote

Yes, you have to actually pay extra in the same month after the normal monthly bill is paid. See my edit for example.

1