Loan and plan details
Compare the crediting—not only the withdrawal schedule
Five distinct strategies
The least expensive path depends on when money is credited
The comparison uses the same starting balance and rate, then models true periodic crediting, held withdrawals, fees, and an equivalent do-it-yourself extra-principal strategy.
| Strategy | Payment pattern | Payoff | Interest | Plan fees | Net savings |
|---|---|---|---|---|---|
| Contractual monthly payment | 12 × $1,896.20 | 30 yrs 1 mo | $382,636.53 | $0.00 | $0.00 |
| True contractual biweekly | 26 × $948.10 | 24 yrs 2 mo | $294,513.50 | $0.00 | +$88,123.03 |
| Biweekly withdrawal plan | 26 × $948.10 | 24 yrs 4 mo | $298,650.78 | $0.00 | +$83,985.75 |
| Semimonthly withdrawals | 24 × $948.10 | 30 yrs 1 mo | $382,636.53 | $0.00 | $0.00 |
| Monthly payment plus 1/12 extra principal | 12 × $2,054.22 | 24 yrs 2 mo | $295,378.99 | $0.00 | +$87,257.54 |
Contractual monthly payment
One scheduled principal-and-interest payment is credited each month.
True contractual biweekly
Each half-payment is contractually due and credited every 14 days using a 26-period interest model.
Biweekly withdrawal plan
Half-payments are held and the regular payment is credited monthly; one extra full payment reaches principal at year-end.
Semimonthly withdrawals
Two half-withdrawals per month are combined into one regular monthly payment; there is no 13th monthly payment.
Monthly payment plus 1/12 extra principal
A regular payment plus one-twelfth of a payment is credited to principal every month, subject to correct instructions and servicer application.
Why this is separate from escrow analysis
Biweekly mortgage crediting changes the payment period and may require escrow calculations to be modified accordingly. It should not be represented by a simple switch inside a monthly escrow projection.