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The mortgage payment formula to calculate a fixed monthly payment is P = L[c(1 + c)^n]/[(1 + c)n - 1]. In this formula, P stands for monthly payment, L is loan, c is the monthly rate and n refers to the month in which the balance is paid in full.


Mortgage lenders use principal, interest, taxes and insurance (PITI) in a mortgage loan formula according to Investopedia, an investment education service. Additionally, financial services use credit scores, household income and property values to determine eligibility ...


The formula for calculating a monthly mortgage payment on a fixed-rate loan is: P = L[c(1 + c)^n]/[(1 + c)^n - 1]. The formula can be used to help potential home owners determine how much of a monthly payment towards a home they can afford.


The formula used to calculate annual percentage rates on mortgage loans is L - F = P1/(1 + i) + P2/(1 + i)2 +… (Pn + Bn)/(1 + i)n, cites the Mortgage Professor. Known as the internal rate of return, the APR includes points and fees charged by lenders.


The Annual Percentage Rate for mortgage interest is calculated in two steps, according to Bankrate. First, solve for the APR payment amount. This number will be different from the actual payment amount. Next, determine what interest rate is required to get the APR payme...


A mortgage is essentially a loan, usually given by a bank, to provide individuals and families with funding to secure housing. Mortgages fall into the larger category of financial loans, but are specifically designed for real estate. Mortgages contain several different ...


There are three basic mortgage types, according to Bankrate, and they include fixed-rate, adjustable-rate and interest-only jumbo loans. With a fixed-rate loan, the borrower's interest rate remains constant over the 15-, 20- or 30-year loan repayment period. Monthly pay...