Bi-Weekly Loans
Your calculator includes a built-in Bi-Weekly loan function ([Set]
[Term]) which allows you to convert established, fully amortized
monthly loans into bi-weeklies (in which one-half the monthly
payment is made every two weeks).
Because you make two extra half-payments per year (since 26
bi-weekly payments is like making 13 regular monthly payments),
these kind of loans can amount to large interest savings and a
substantial reduction in the time it takes to pay them off.
You start these problems by setting up the initial monthly loan
and then pressing [Set] [Term]. A second press of [Term] shows the
total interest savings over the entire loan.
Bi-Weekly Term Reduction & Payment
Find the initial monthly payment on a 30-year, $76,500 mort-
gage at 10.25% annual interest rate, and then convert it to a bi-
weekly to find out how many years it will take to pay off this
loan and the total interest savings as well as the bi-weekly
payment amount.
Steps Keystrokes Display
Clear calculator [On/C] [On/C] 0.00
Enter loan amount 76,500 [L/A] 76,500.00
Enter term in years 30 [Term] 30.00
Enter annual interest 10.25 [Int] 10.25
Find monthly payment [Pmt] “run” 685.52
Find Bi-Weekly term [Set] [Term] “run” 20.72
Find total interest savings [Term] - 62,166.78
Find bi-weekly payment [Pmt] 342.76
34 – Qualifier Plus
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