How do you calculate a mortgage payment formula?


Quick Answer

The easiest way to calculate a fixed-rate mortgage payment is to use an automatic mortgage payment calculator, such as the one available at BankRate.com. The formula takes into account the amount, length and interest rate of the loan.

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Full Answer

The mortgage calculator a BankRate.com shows users a chart of the ratio of principle to interest that they are slated to pay throughout the life of their loan. It also shows how additional payments made at anytime affect this ratio. Users can adjust the interest rate to see how different rates affect their monthly payments and the amount of interest they pay throughout the life of the loan.

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