biweekly payments on a loan using Pmt function

[Guest]

I wanted to figure how much my savings would be on a loan if I made biweekly
payments instead of monthly payments. Example: if the regular monthly
payment was $1,231 , I would make two payments of $615 instead. How can I
determine how much I will save in interest with option 2?

rate:6.25%/12
nper:12*30
loan amount:200,000
The above amounts are what I used to determine the monthly payment of $1231,
which multiplied out will have me repaying $443,160 over the life of the
loan. How much interest would I be saving making the biweekly payments is
what I want to figure out? Can anyone help?

 

[Jim Cone]

Using the free Excel add-in "Calculate Payments", the results were...
'---------------------------------
Loan: $200,000
Interest rate: 6.25 %
Term: 30 years
Payments per year: 12
Number of payments: 360
Payment at end of period.
Payment: $1,231.43
Total payments: $443,316

Loan: $200,000
Interest rate: 6.25 %
Term: 24 years - 4 months
Payments per year: 26
Number of payments: 632.2
Payment at end of period.
Payment: $615.72
Total payments: $389,257
'-------------------------------------

Download the add-in from...
http://www.realezsites.com/bus/primitivesoftware
No registration required.
--
Jim Cone
San Francisco, USA



"Payment Function"
<Payment (e-mail address removed)>
wrote in message
I wanted to figure how much my savings would be on a loan if I made biweekly
payments instead of monthly payments. Example: if the regular monthly
payment was $1,231 , I would make two payments of $615 instead. How can I
determine how much I will save in interest with option 2?

rate:6.25%/12
nper:12*30
loan amount:200,000
The above amounts are what I used to determine the monthly payment of $1231,
which multiplied out will have me repaying $443,160 over the life of the
loan. How much interest would I be saving making the biweekly payments is
what I want to figure out? Can anyone help?