how would i calc. a mtg payment myself on paper. is it the loan amt. x rate divided by the term(in months)?

Answer 1

Unless you are a glutton for punishment, you wouldn't want to do this by hand. But here's how it works for a FIXED rate loan:


Step 1: Find monthly payment

Monthly Payment = {monthly rate + [ monthly rate / ( ( 1+monthly rate)^(# of months) - 1 ) ] } * loan principal

** For example, a $15k loan at 10% over 36 months has a monthly payment of $484.01


Step 2: Find the interest amount for the month

=> Take the principal balance of the loan & multiply it by the monthly rate to get the interest of the month. For the first month, the principal balance would be the loan amount.

** e.g.: $15,000 * (10%/12) = $125


Step 3: Find the principal paydown.

=> Take the monthly payment in Step 1, and subtract the interest amount in Step 2 from it.

**e.g.: $484.01 - $125.00 = $359.01


Step 4: Find the new principal balance

=> Take the difference in Step 3 and subtract it from the principal balance you started with.

**e.g.: $15000-$359.01 = $14,640.99


Step 5: Repeat Step 2 to Step 4 until the end of the term of the loan or when the balance reaches 0. Normally, this would match exactly, unless you have a balloon payment or a negative amortization loan.

** e.g.: $14640.99 * (10%/12) = $122.01
$ 484.01 - $122.01 = $362.00
$14640.99 - $362.00 = $14278.99
.... so on and so forth.

I recommend:
1) Use an Excel spread sheet instead. Use the function: PMT(rate,# of periods,loan amount, end of loan amount, interest type) to find the monthly payment. Remember to divide the rate so that it is a monthly rate. Future value is usually 0 unless you have a balloo payment. Interest type is arears so use 0.

Then you can do an amortization table by listing the balance, the interest amount, the amount of principal pay down (monthly payment minus interest amount). And then calculate the balance for the next month (balance - principal paydown).

2) It' much easier to use an online mortgage calculator or amortization table calculator such as the ones below:
http://www.bankrate.com/brm/calculators/mortgages.asp
http://www.finaid.org/calculators/loanpayments.phtml


Just Be!

Answer 2

loan amt X .08 = yearly

divid that by 12, and this will estimate your monthly payment. this is if you have pretty good credit. and you can include Insurance. However, don;t forget about taxes.

Answer 3

No, that's not the formula.

It's very difficult to calculate mortgage payments on paper. The formula is quite complex. It's much easier to use an online calculator such as the one at Bankrate.com.

Answer 4

One way is this calculator:http://www.bloomberg.com/invest/calculators/mortgage.html

By hand calculator I can only give you how to calculate your next month:
Given your principle: example $87,000
Inrtest rate of 5.875%

Bal. x rate /100 /360 x 30 = payment

87,000 x 5.875/100 / 360 x 30 =$425.94

Answer 5

Go to realtor.com pick a house any house then choose mortgage payment fill in what you need to and you will have an answer