The world's local bankThe world's local bankThis calculator is for informational and general illustrative purposes only and may be based on assumptions, dates and projections that may not be correct or applicable.
| Definitions | |
|---|---|
| Mortgage amount | Original or expected balance for your mortgage. |
| Interest rate | Calculator assumes that interest is calculated semiannually. |
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Amortization period
|
The number of years over which you will repay this loan. The most common mortgage amortization periods are 20 years and 25 years. |
| Mortgage payment | Your principal and interest payment (PI) per period. |
| Accelerated weekly and bi-weekly payments | Accelerated weekly and accelerated bi-weekly payment options are calculated by taking a monthly payment schedule and assuming only four weeks in a month. This calculator calculates an accelerated weekly payment, for example, by taking your normal monthly payment and dividing it by four. Since you pay 52 weekly payments, by the end of a year you have paid the equivalent of one extra monthly payment. This additional amount accelerates your loan payoff by going directly against your loan's principal. The effect can save you thousands in interest and take years off of your mortgage.
The accelerated bi-weekly payment is calculated by dividing your monthly payment by two. You then make 26 bi-weekly payments. Just like the accelerated weekly payments you are in effect paying an additional monthly payment per year. |
| Total payments | Total of all monthly payments over the full term of the mortgage. This total payment amount assumes that there are no prepayments of principal. |
| Total interest | Total of all interest paid over the full term of the mortgage. This total interest amount assumes that there are no prepayments of principal. |
