Mortgage Calculator Accelerated Weekly

Accelerated Weekly Payment Formula:

\[ PMT_{weekly} = \frac{P \times r_{week}}{1 - (1 + r_{week})^{-n_{week}}} \]

Accelerated Weekly Payment (PMT_weekly):

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1. What is Accelerated Weekly Mortgage Payment?

Accelerated weekly mortgage payments are a strategy where you make weekly payments instead of monthly, effectively making 13 monthly payments per year. This approach helps pay down your mortgage faster and reduces the total interest paid over the life of the loan.

2. How Does the Calculator Work?

The calculator uses the accelerated weekly payment formula:

\[ PMT_{weekly} = \frac{P \times r_{week}}{1 - (1 + r_{week})^{-n_{week}}} \]

Where:

$ P $ — Principal loan amount ($)
$ r_{week} $ — Weekly interest rate (annual rate ÷ 52)
$ n_{week} $ — Total number of weekly payments (years × 52)

Explanation: This formula calculates the fixed weekly payment needed to fully amortize a loan over the specified term, taking into account the weekly compounding of interest.

3. Benefits of Accelerated Weekly Payments

Details: Accelerated weekly payments can help you pay off your mortgage years earlier and save thousands in interest. By making payments more frequently, you reduce the principal balance faster, which in turn reduces the amount of interest that accrues.

4. Using the Calculator

Tips: Enter the principal amount in dollars, annual interest rate as a percentage (e.g., 3.5 for 3.5%), and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How much can I save with accelerated weekly payments?
A: Savings vary based on your mortgage amount and interest rate, but typically you can save 15-30% in interest and pay off your mortgage 4-6 years earlier.

Q2: Is there any penalty for making accelerated payments?
A: Most mortgages allow accelerated payments without penalty, but you should check your mortgage agreement to confirm.

Q3: How does weekly compare to bi-weekly payments?
A: Weekly payments provide slightly faster debt reduction than bi-weekly as you're making payments more frequently and reducing principal more often.

Q4: Can I switch to accelerated payments after my mortgage has started?
A: Yes, most lenders allow you to switch payment frequency. Contact your mortgage provider to make this change.

Q5: Are there any downsides to accelerated payments?
A: The main consideration is ensuring you have sufficient cash flow to make more frequent payments. There are typically no other disadvantages.