Canadian Mortgage Calulator - Interest Savings

[pacino]

Hello,

I'm attempting to build a Mortgage payment calculator which calculates interest semi-annually. The goal of the calculator is to determine how much interest you would save if your payments were set to Accelerated Bi-weekly, and Accerlerated Weekly vs. Monthly.

I've already calculated what the payments would be for each payment type, however I'm not able to determine what the interest savings would be.

Any suggestions would be greatly appreciated.

Thank you.

 

[Dave Patton]

How did you calculate the payment of 691.84?

 

[Dave Patton]

If your payment of 691.84 includes an extra amount against principal, the mortgage is paid off quicker; consequently, less interest is incurred.

The number of payments times payment amount gives gross payment (principal +interest).

Deduct principal from the gross payment and you have the amount of interest paid.

You can use the formula mentioned previously and/or prepare a quick amortization schedule.

 

[jeffreybrown]

I think this pre-built spreadsheet is worth checking out. Seems it will do everything you are asking.

http://www.vertex42.com/Calculators/home-mortgage-calculator.html

 

[Dave Patton]

The data was misleading. The bi-weekly payment was not calculated by a mortgage formula; it is just 50% of the monthly payment.

Each payment includes an extra amount toward principal and the mortgage is paid off quicker. If a similar extra payment is made with the monthly payment, the mortgage will be repaid at a similar time with similar interest savings.