Mortgage Calculator Accelerated Weekly

Accelerated Weekly Payment Formula:

\[ Weekly\ Payment = \frac{Loan\ Amount \times r}{1 - (1 + r)^{-n}} \times \frac{52}{12} \]

Weekly Payment:

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1. What is Accelerated Weekly Mortgage Payment?

Accelerated weekly mortgage payments involve making payments every week instead of monthly, which can significantly reduce the total interest paid and shorten the loan term. This payment strategy takes advantage of more frequent compounding to pay down principal faster.

2. How Does the Calculator Work?

The calculator uses the accelerated weekly payment formula:

\[ Weekly\ Payment = \frac{Loan\ Amount \times r}{1 - (1 + r)^{-n}} \times \frac{52}{12} \]

Where:

\( Loan\ Amount \) — Total mortgage amount in dollars
\( r \) — Weekly interest rate (annual rate ÷ 52)
\( n \) — Total number of weekly payments (loan term in years × 52)
\( \frac{52}{12} \) — Acceleration factor

Explanation: The formula calculates the standard weekly payment and then applies the acceleration factor to determine the actual weekly payment amount.

3. Benefits of Accelerated Weekly Payments

Details: Accelerated weekly payments can save thousands in interest over the life of the loan and help homeowners pay off their mortgages years earlier than scheduled.

4. Using the Calculator

Tips: Enter the total loan amount in dollars, annual interest rate as a percentage, 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 by loan amount and interest rate, but typically you can save 15-30% in total interest and reduce the loan term by 4-6 years on a 30-year mortgage.

Q2: Is there a penalty for accelerated payments?
A: Most mortgages allow accelerated payments without penalty, but check your specific mortgage agreement to confirm.

Q3: How does acceleration work mathematically?
A: By making 52 weekly payments instead of 12 monthly payments, you're effectively making 13 monthly payments per year, which accelerates principal reduction.

Q4: Can I switch back to monthly payments?
A: Most lenders allow you to change payment frequency, but confirm with your specific lender about any restrictions or fees.

Q5: Are there any drawbacks to accelerated payments?
A: The main consideration is ensuring you have sufficient cash flow to handle the more frequent payment schedule.