Some people want to know how to calculate mortgage payments. You don’t really need to do the work, but if you’re curious you can certainly do so. To calculate mortgage payments, you need to know a few details about the loan. Let’s go through the steps and tools you can use to calculate mortgage payments.
Why Calculate Mortgage Payments?
By going through the process, you get an idea of how much you pay in principal and interest each month. Calculating mortgage payments lets you look "under the hood" and see how your loan really works. When you calculate mortgage payments, you’ll see how your loan amortizes. Amortization is the process of paying down a loan.
Fixed-Rate Mortgage Calculator
Here at Majestic Home Loan, our fixed-rate mortgage calculator is fairly simple to understand. You only need to plug in three numbers to make it work. You'll use the beginning balance of your loan, your interest rate and the term of your loan in years. Simply type in these numbers and press calculate and you will get your monthly payment amount and the length of time it will take you to pay off your loan if you make each payment on time and only for the amount that is due.
So how does the calculator work? It inputs the numbers you give it into a simple mathematical formula that is programmed into its code. It is not much different from a formula in Excel. It's just dressed up in a calculator form to make it more friendly and accessible to the user. Remember, a mortgage calculator can only provide a good estimate. For more exact numbers, be sure to speak to one of our licensed loan officers. Contact us today at 1-877-546-2145