Mortgage Payment Formula
Mortgage Calculation Results
Home Price
Monthly Payment
Total Interest
Total Payment
Amortization Schedule (First 5 Years)
| Payment # | Payment Date | Payment Amount | Principal | Interest | Remaining Balance |
|---|
Recommendation
Based on your mortgage details, consider making extra payments to reduce your loan term and save on interest. Even small additional payments can make a significant difference over time.
Understanding Mortgages
What is a Mortgage?
A mortgage is a loan specifically used to purchase real estate. The property itself serves as collateral for the loan. Mortgages typically have longer terms (15-30 years) and lower interest rates compared to other types of loans.
Key Components
• Principal: The original loan amount
• Interest: Cost of borrowing the money
• Term: Length of the loan
• Down Payment: Initial upfront payment
• Closing Costs: Fees associated with the loan
Mortgage Tips
• Maintain good credit score
• Save for a larger down payment
• Compare rates from multiple lenders
• Consider extra payments to save interest
• Understand all fees and costs involved