How are monthly mortgage payments calculated?
It’s a long complicated formula, but each payment made is basically your current principal times your current monthly interest rate. Part of the payment goes to principal, the rest to interest. As you pay on the loan, more goes to principal because less goes toward interest because you have a lower balance to pay interest on. I can’t think of the formula right off, but I’m sure you can google it. You did it the right way, though – using a mortgage calculator. LOL! Way too complicated to use the formula.
