How do you calculate accelerated weekly payments from monthly payments?

To determine the accelerated weekly payments from monthly payments, you first need to understand the relationship between monthly and weekly payment structures.

The key aspect of accelerated payments is that they are designed to allow borrowers to pay off their loans faster by making more frequent payments. In Canada, the typical number of weekly payments is 52 weeks in a year. Since a standard month usually comprises about 4.33 weeks (there being 52 weeks divided by 12 months), calculating an accelerated weekly payment from a monthly payment requires adjusting the monthly payment to match the weekly frequency.

By dividing the monthly payment by 4, you approximate the ordinary weekly payment, albeit a little simplified, because it doesn't account fully for the additional payments made in months with 5 weeks. However, in standard practice, an accelerated weekly payment is typically based on converting monthly figures to a more frequent payment interval. Although this method simplifies things, it underestimates the precise amount that would lead to paying the loan off faster than standard weekly payments.

As you develop a deeper understanding of mortgage payments and their calculations, consider that the best practice for exact calculations often involves determining the actual interest accruing over each period and adjusting it accordingly, but for basic scenarios, using the approach of dividing monthly payments provides