|Compounding method used in the United States|
Calculate any regular monthly payment here.
Now compare that monthly payment to the same payment made weekly, bi-weekly or semi-monthly.
Different lenders can calculate these payments in 1 of 3 different ways.
Note that the truely accelerate method on the left can save you years off the term of your mortgage and thousands of dollars in interest.
You might also note that the method on the right can reduce the amount of your total monthly payment slightly but does little to change the total interest paid and the term length pretty much stays the same.
|Compounding method used in Canada|
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