How Do You Calculate Mortgage Payments Using A Formula?
Your mortgage monthly payment depends on three factors: the size of the mortgage, the interest rate and the term of the mortgage. The larger the loan, the higher the interest rate, or the shorter the term, the higher your monthly mortgage payment. Being able to calculate your monthly payment will help you to make sure that the mortgage you are considering will fit your budget. Compute the number of monthly payments you must make over the life of the mortgage by multiplying 12 by the number of years in the term of your mortgage. For example, if you took out a 15 year mortgage, you would multiply 15 by 12 to get 180. Figure your monthly mortgage interest rate by dividing the annual interest rate by 12. For example, if your annual interest rate equals 7.56 percent, you would divide 0.0756 by 12 to find the monthly rate to be 0.0063. Multiply the monthly interest rate by the amount of the mortgage. Continuing the example, if your mortgage equals $350,000, you would multiply $350,000 by 0.0
