UAE Mortgage Calculator: Monthly vs. Biweekly Payment Options?

UAE Mortgage Calculator: Monthly vs. Biweekly Payment Options?

UAE Mortgage Calculator: Monthly vs. Biweekly Payment Options?

Buying a home is a significant financial commitment, and choosing the right mortgage payment plan is crucial. Understanding your options is essential in the UAE, where real estate is booming. One critical decision is whether to make monthly or biweekly payments. In this article, we’ll explore these payment options and how they can affect your mortgage. Let’s dive into the world of mortgage calculations and help you make an informed decision about your home financing with eMortgage.

How do Monthly Mortgage Payments work?

Monthly payments are the traditional method for repaying your mortgage. With this approach, you make one monthly payment to your mortgage lender. This is the most common method, which most people are familiar with.

What are the Advantages of Monthly Payments?

  • Predictability: Monthly payments offer a predictable schedule, making it easier to budget for your mortgage. Knowing exactly how much you need to pay each month provides financial stability and reduces surprises.
  • Consistency: Many people prefer the consistency of monthly payments, as it aligns with their monthly income. This regularity simplifies financial planning and ensures that the mortgage payment is a priority.
  • Lower Initial Payments: Monthly payments may be more manageable for those with tighter budgets. They require a smaller amount to be paid at once compared to more frequent biweekly payments, which can help homebuyers during the early stages of homeownership.
  • Standard Practice: Monthly payments are the traditional and widely accepted method for repaying mortgages. This makes them the default choice for most homeowners, simplifying the process.
  • No Need for Synchronization: Monthly payments sync with standard monthly income cycles. They don’t require synchronization with irregular paychecks or financial sources, making them accessible to a broader range of individuals.
  • Reduced Administrative Burden: Managing monthly payments is generally less administratively complex. It involves fewer transactions and less paperwork compared to biweekly payments.

What are Biweekly Mortgage Payments?

Biweekly payments, on the other hand, involve making half of your monthly mortgage payment every two weeks. Over the course of a year, this results in 26 half-payments, which is equivalent to 13 total monthly payments. By making more frequent payments, you make one extra payment each year. This can significantly impact your mortgage in the long run.

What kind of benefits can you get with Biweekly Payments?

  • Faster Loan Repayment: Biweekly payments result in an extra payment each year. By making 26 half-payments, equivalent to 13 full monthly payments, you effectively pay off your mortgage faster. This accelerates the reduction of your principal balance.
  • Interest Savings: Making more frequent payments with biweekly schedules reduces the principal balance more quickly. As a result, you pay less in interest over the life of the loan, potentially saving thousands of dollars.
  • Build Equity Faster: Biweekly payments help you build home equity acceleratedly. This can be advantageous if you plan to sell your home or refinance because a higher level of equity can provide more financial freedom and better loan terms.
  • Alignment with Paychecks: For individuals who receive their income biweekly, making biweekly payments can be more in sync with their cash flow. This can make budgeting and managing the mortgage more convenient.
  • Effective for Shorter Loan Terms: Biweekly payments are particularly effective for shorter loan terms, such as 15-year mortgages. They contribute to faster principal reduction, enabling you to pay off your mortgage in less time.
  • Long-Term Interest Savings: Over the life of the mortgage, the additional payments from biweekly schedules can result in substantial interest savings, making it a financially prudent choice for the long term.
  • Reduced Mortgage Balance: With more frequent payments, the outstanding mortgage balance decreases more rapidly, leading to a lower loan-to-value ratio. This can be beneficial in refinancing or obtaining better mortgage terms in the future.
  • Automated Payments: Many lenders offer automated biweekly payment options, which make it easy for homeowners to set up and forget about it. This ensures you don’t miss payments.

What Factors to Consider while choosing a Mortgage Payment Option?

  1. Mortgage Rate: The interest rate on your mortgage can impact which payment option is more beneficial. Higher rates may make biweekly payments more attractive as you reduce the principal faster.
  2. Loan Term: Shorter loan terms, like 15-year mortgages, can naturally result in faster equity buildup, but biweekly payments can accelerate this further.
  3. Financial Stability: Consider your financial situation. Biweekly payments require more frequent transactions, which may not suit everyone’s cash flow.
  4. Financial Goals: Your long-term financial goals should influence your decision. If you aim to pay off your mortgage quickly, biweekly payments may align with your objectives.
  5. Interest Savings: Calculate the potential interest savings with biweekly payments using an online mortgage calculator to see if it justifies the added effort.
  6. Property Taxes: The cost of property taxes can vary depending on your location and the value of your property. Make sure to budget for these annual costs.
  7. Homeowners Insurance: It’s essential to have homeowners insurance to protect your investment. The annual cost of this insurance can vary based on your property’s value and location.
  8. Private Mortgage Insurance (PMI): If your down payment is less than 20% of the purchase price, you may be required to pay PMI. This can add to your monthly expenses until you’ve built enough equity in your home.
  9. Closing Costs: When buying a home, you’ll incur various closing costs, including fees for loan origination, appraisal, and title insurance.
  10. Homeowners Association (HOA) Fees: If you purchase a property in a community with an HOA, be prepared for monthly or annual fees to cover maintenance and communal services.
  11. Student Loans and Credit Score: Your credit score and existing debts, such as student loans, can impact your eligibility for a mortgage and the interest rate you receive.

How eMortgage Can Help?

At eMortgage, we understand that the mortgage process can be complex, and choosing the right payment plan is a significant decision. Our team of experts is here to guide you through the various mortgage types, terms, and payment options to find the best fit for your needs. Whether you opt for monthly or biweekly payments, we provide a seamless and transparent mortgage process, ensuring you’re equipped with the knowledge to make the right choice.

How does the Mortgage Calculator work?

A mortgage calculator is a helpful tool that assists individuals in estimating their monthly mortgage payments based on various factors. Here’s how a mortgage calculator typically works:

Input Variables: You start by entering essential variables into the calculator. These variables may include:

  • The loan amount: The total amount you plan to borrow to purchase a home.
  • Interest rate: The annual interest rate provided by your lender.
  • Loan term: The number of years you will repay the loan. Common terms are 15, 20, or 30 years.
  • Down payment: The initial amount you plan to pay upfront as a percentage of the property’s purchase price.
  • Property taxes: The estimated annual property taxes for the home.
    Homeowners insurance: The annual cost of insuring your home.
  • Private mortgage insurance (if applicable): If your down payment is less than 20% of the home’s purchase price, you may need to pay for private mortgage insurance.

Calculation: Once you’ve entered these variables, the calculator uses a mathematical formula to compute your estimated monthly mortgage payment—the formula factors in the loan amount, interest rate, loan term, and other costs.

Monthly Payment Breakdown: The calculator typically provides a breakdown of your monthly payment, showing you how much goes toward the principal (the loan amount) and how much goes toward interest. It may also include property tax and homeowners insurance estimates if you provide those figures.

Amortization Schedule: Some mortgage calculators also generate an amortization schedule. This schedule outlines how your mortgage balance decreases over time as you make payments. It shows the gradual increase in the portion of each payment toward the principal.

Additional Features: Advanced mortgage calculators may offer additional features, such as the ability to include extra payments, adjustable-rate mortgage calculations, and comparing different loan scenarios.

Results: The calculator typically displays your estimated monthly mortgage payment. This figure can help you assess whether the mortgage aligns with your budget and financial goals.


Whether you opt for monthly or biweekly payments, the choice ultimately depends on your financial situation, goals, and mortgage type. At eMortgage, we’re here to provide you with expert guidance and a seamless mortgage process.

We empower you to make informed decisions about your mortgage payments, allowing you to confidently navigate the UAE real estate market. The key is to evaluate your long-term financial objectives and align your mortgage payments with those goals, whether it’s faster equity buildup, interest savings, or a combination of both.