How do I create a Bi-Weekly scenario?

Mortgage Coach does not include a feature to show bi-weekly payments but there is a work-around to achieve the same result. To calculate the term reduction payment: 

1. Use a biweekly payment calculator to determine the monthly payment
2. Multiply by 26 to find out the yearly sum.
3. Subtract the yearly payment of the fully amortized loan from that figure
4. Divide the result by 12 and use that number as a term reduction payment.

The numbers will come out correctly but since there is no reference on the report to the Bi-weekly payment, you will need to notate this somewhere in the notes section. An example is shown here:

Here is the formula again in a mathematical format:

Goal = find out yearly then monthly difference between bi-weekly payments and monthly payments and reinvest that amount as a term reduction.

[(BW Payment x 26) – (Monthly Payment x 12)] = yearly difference in payments

Take yearly difference and divide it by 12 and use that figure in a term reduction on the Analysis tab when you click on the Adjust Reinvestment Strategy button, as shown here:

Here is where the difference shows up on the borrower presentation:

This graph illustrates the effect of the extra payments toward interest savings over the term of the loan.

Additional Resources:

• Here is a link to a free bi-weekly calculator you can use:
  http://www.bankrate.com/calculators/mortgages/bi-weekly-mortgage-calculator.aspx
• Here is a sample TCA that uses this workaround: https://mcedge.tv/qe6q3f