Calculate your monthly mortgage payments by using a mortgage calculator, reports Bankrate. Among the factors needed for the calculator tool to figure out the monthly mortgage payment are the amount of the mortgage, the mortgage term in years or months, the interest rate per year and the start date. The calculator then figures out your monthly payment and also informs you of the amount of principal and interest you pay over the term of the loan.Continue Reading
Along with calculating monthly payments, the calculator also provides an amortization schedule for the term of the loan, as seen on Bankrate. The amortization schedule provides you with crucial bits of information about each monthly payment. The first of these items of information is the payoff date of the loan. Other items of information on the schedule include the amount of each payment that goes off to pay the principal and the interest of the loan, the total interest paid after each payment and the amount of principal remaining.
Extra payments on the mortgage can be calculated into the amortization schedule, reports Bankrate. Such payments can be scheduled in a variety of options, including extra payments made every month, those made on a set month each year and one-time extra payments. Such payments shorten the term of the loan and are cost-saving because they help pay off the principal earlier, decreasing the interest paid.Learn more about Credit & Lending