How do you calculate what your mortgage payment will be without using a mortgage calculator?
January 17, 2007 by admin
Filed under Questions and Answers
NeedInfo06 asked:
Can somone show me how to calculate a mortgage payment
Can somone show me how to calculate a mortgage payment
like for example
what is the monthly payment on a $200,000 mortgage at 6% interest over 25 years?
Can somone show me how to calculate a mortgage payment
like for example
what is the monthly payment on a $200,000 mortgage at 6% interest over 25 years?
I need to know how to do the mathematical calculations, don’t just give me the anwser.
Create a video blog
tikki on Fri, 19th Jan 2007 10:33 pm
I’m not exactly sure off the top of my head without using a mortgage calculator but, someone has told me to just say 1% will be your mortgage payment. So with $200,000 mortgage i would estimate your payment to be 2000/mth.
xavier p on Sat, 20th Jan 2007 4:29 pm
With mortgages, we want to find the monthly payment required to totally pay down a borrowed principal over the course a number of payments.The standard mortgage formula is:
M = P [ i(1 + i)n ] / [ (1 + i)n - 1]
Where M is the monthly payment. i = r/12. The same formula can be expressed many different way, but this one avoids using negative exponentials which confuse some calculators.
shell on Sat, 20th Jan 2007 7:28 pm
1288.60 but that doesn’t include taxes or insurance. This is just P&I. Also take in account if you have HOA dues.
wifey on Sun, 21st Jan 2007 2:18 am
Easiest way to do that is to take the purchase price of the house and divide it by 100. The figure will be very close to your mortgage amount including property tax and insurance if you were paying roughly 9% interest. It’s good to figure it this way too, because then you’ve estimated on the high end, so you know it will be less than that. If you’re getting a 5% interest, than divide your figure by 50.
NevadaHomes on Tue, 23rd Jan 2007 7:33 am
Hi NeedInfo06,
Microsoft Excel has an amortization table template that you can use. If you do not have in your computer, go to Microsoft’s website. Type amortization table in the search bar. Download it from there.
Tony Q on Wed, 24th Jan 2007 7:46 pm
monthly payment = interest portion + principal portion
m1=12 in us the interest is compounded monthly
(in canada m1=2, interest is compounded semi-annual)
m2=12 payment every month
YR=25
%int=6 percent annual interest
n= m2 * YR = 12 * 25 = 300
int=%int / 100 / m1 = 6 / 100 / 12 = 0.005
INT = (1 + int) ^ (m1 / m2) -1
INT = (1 +0.005) ^ (12 /12) -1 = 0.005
PV = loan = 200,000
F1 = interest portion of mortg
F1 = PV * INT = 200,000 * 0.005 = 1000
F2 = equal monthly payment factor
F2 = 1 – [1 + INT] ^ [ - n ]
F2 = 1 – [1 + 0.005] ^ [ - 300 ]
F2 = 0.77603432
PMT = monthly payment = F1 / F2 = 1000 / 0.77603432
PMT = 1288.60