1. What is Accelerated Weekly Mortgage?

The Accelerated Weekly Mortgage payment strategy involves making mortgage payments on a weekly basis rather than monthly, which can significantly reduce the total interest paid over the life of the loan and shorten the amortization period.

2. How Does the Calculator Work?

The calculator uses the interest savings formula:

Where:

• \( \text{Extra Payment} \) — Additional payment amount beyond regular mortgage payment ($)
• \( \text{Amortization Factor} \) — Factor representing the interest savings per dollar of extra payment (unitless)

Explanation: This formula calculates the total interest savings achieved by making accelerated weekly payments compared to standard monthly payments.

3. Importance of Interest Savings Calculation

Details: Calculating interest savings helps homeowners understand the financial benefits of accelerated payment strategies and make informed decisions about mortgage repayment options.

4. Using the Calculator

Tips: Enter the extra payment amount in dollars and the amortization factor. Both values must be positive numbers for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between weekly and accelerated weekly payments?
A: Regular weekly payments are 1/4 of the monthly payment, while accelerated weekly payments are 1/4 of the monthly payment multiplied by 12/52, resulting in higher annual payments.

Q2: How much can I save with accelerated weekly payments?
A: Savings depend on your mortgage amount, interest rate, and amortization period, but typically range from thousands to tens of thousands of dollars over the loan term.

Q3: Are there any penalties for accelerated payments?
A: Most mortgages allow accelerated payments without penalties, but check your mortgage agreement for specific terms and conditions.

Q4: How is the amortization factor calculated?
A: The amortization factor is derived from your mortgage interest rate and remaining amortization period, representing the interest savings per dollar of extra payment.

Q5: Can I switch back to monthly payments if needed?
A: Most lenders allow you to switch payment frequencies, but check with your specific lender for their policies and any potential fees.