1 Thought on is the amount of money u pay on a mortgage, the amount u borrowed times the interest rate?
  1. Reply
    PrivateBanker
    February 3, 2014 at 5:34 pm

    No, that would be a simple interest loan wherein no principal payments are made. A mortgage typically amortizes over the length of the loan, meaning equal periodic (usually monthly) payments are made such that at the end of the mortgage term the principal and interest are fully paid. (I probably didn’t explain that very well.)

    Here is a site where you can calculate a mortgage payment. You will need the principal amount, term (length of time of the mortgage) and the interest rate being charged. Good luck. NOTE: change where it says “show results by: “Year” to “month”, to get a monthly payment.
    http://www.amortization-calc.com/

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