How to Calculate a Bi-Weekly Mortgage Using the HP 12C

Bi-weekly mortgage will reduce the amount of interest paid on the mortgage.

Bi-weekly mortgages are mortgages that must be paid every two weeks instead of once a month. Bi-weekly payments can take off six to eight years of mortgage payments. There are two reasons bi-weekly payments shorten the loan. First, if a monthly loan payment is $1,000, then the bi-weekly loan payment is $500, the borrower will makes 26, 52 weeks divided by a payment every two weeks, payments of $500 instead of 12 payments of $1,000. Then the total payments for a year is $13,000 for bi-weekly, instead of $12,000 for monthly. Second, a bi-weekly payment will let less interest accrue each year because of the extra payments, so the borrower will pay back less interest. The Hewlett Packard 12c is a financial calculator. Since it is a financial calculator, it has options most calculators do not have. One such option is the ability to calculate bi-weekly mortgages.

Instructions

1. Press "g" then "END." Press "f," "FIN," then "CLX."

2. Type the years of the loan, then "g" then "12x."

3. Type the interest rate then press "g" then "i."

4. Type the amount borrowed on the loan, then press "PV."

5. Press "PMT."

6. Press "2," "/" then "PMT." The "/" is the calculator's division sign.

References

• HP: Bi-Weekly Mortgage Payments and Amortization Schedule HP 12c Financial Programmable Calculator
• Bank Rate: Should You Start a Biweekly Mortgage Payment Plan?