Formula for calculating the mortgage repayment?

Question

Could some one give me the formula for calulating the mortgage repayment figure. Consider the following example for calulation.
Suppose the Principal is $ 250,000 ( borrowed money )
Interest is 8.00%
Time for loan repayment is 20 years
Frequency of repayment is monthly
So what will be the repayment amount = ............/ month????
I know now a days with the help of software I can just put the above figure in the respective columns and I will get the result within a second but I want to know the calculating formula so that I can calculate myself.
Thanks for your answer in advance.

Answer 1

I use this calculator: http://ray.met.fsu.edu/~bret/amortize.html

You can use it on any loan/credit card you are paying back. You can also see the amortization table to see how much is going towards principle & interest.

Answer from the above calculator is: 2091.10/month

Answer 2

I have been a loan officer for many years now, yet never found the formula, I think it's a little more complicated than you think. what I personally use is spreadsheets. This is the formula you put into Excell to get the payment:
=PMT(8%/12,240,250000,0,0)

where 8%/12 - is monthly interest
240 -number of months to repay
250000 - present balance
0 - future balance
0 - type of loan (this can be ommited, I think it only matters for some type of Canadian loans)

It returns negative value for payment as 2091.10
Payments are always negative values on Excell, so you can add a minus sign to reverse it
-=PMT(8%/12,240,250000,0,0)

Answer 3

maximum unfold sheet utility have applications regular to make the calculation straightforward. With my utility the function is PMT(concept, value,term) the place in case you're making month-to-month money you divide the value by ability of 12. The term is the style of money you would be making. The formulation is as follows: i= activity value n=style of years i/(a million-(a million+i)**-n) accelerated by ability of the quantity of the internal maximum loan

Answer 4

it's P = principal value
i = interest annual
T = time in years
M = monthly payment

M = (P) * [ { ( i ) / (12*100) } / { 1 - ( 1 + ( i ) / (12*100)) ^ (-12 * T) } ]...

hope it helps...

Answer 5

((interest rate/100)/12) * Amount borrowed) / (1-((interest rate/100)/12))(-number of monthly payments)