So why can't you get a $100,000 mortgage and pay the bank $5,500 a year, let them earn a 10% profit? The reason is that traditional mortgages are designed so you end up owning the house when the mortgage is paid off. Our simple example above would apply to an "interest only" ...
If you want to calculate the remaining balance of your home loan (just the principal, not the interest), you need to use a special financial math formula that accounts for amortization. The formula described below only works for a fixed rate mortgage, where no early payments are made. If ...
Calculate your mortgage payments Once you've entered all the information in the mortgage calculator, click the “Get my options” button to see your options. You can review the top recommendation and choose the other suggestions to see how your monthly payment would change with a different loan...
or not you’ll have to pay for private mortgage insurance (PMI). To avoid PMI, your LTV typically needs to be 80% or less, but PMI applies only to first liens so if your home equity line of credit is a second lien against your house, you shouldn't have to worry about paying PMI...
How to calculate the square feet of a house When preparing to measure the square footage of a home, be it a house, condo, or townhouse, start with a few simple supplies: Paper and pencil Calculator Measuring tape and/or laser measuring tool If the property is a perfect rectangle, simply...
How to Calculate a 30-Year Fixed Mortgage Personal Finance How to Calculate Mortgage Payments on a Financial Calculator The formula: PMT = P [ r (1+r)n] / [(1 + r)n- 1] Example Say you take out a $200,000 loan for 30 years at 6 percent annual interest: ...
Step 3: Take the difference to determine your equity Once you have your home’s value and your mortgage balance, you’re almost finished. From here, all you need to figure out how to calculate equity is some simple subtraction. Your home equity equals the current value of your home minus...
Refinancing a mortgage replaces your home loan with a new one. A refinance to a better interest rate can lower your monthly mortgage payments.
Raise the result to the 360th power, because you make 360 payments over a 30-year mortgage. In this example, raise 1.003433 to the 360th power to get 3.4354. We Recommend Personal Finance How Do I Manually Calculate an Auto Loan?
Calculate your home affordability Use our affordability calculator to estimate the home price and monthly mortgage payment you can afford. If you've already organized your financial information, this step should be easy. Simply enter the numbers into the calculator to get an estimate. You can play...