A formula equation is a visual representation of a reaction using chemical formulas. A chemical formula is an expression that states the number and types of atoms that make up any given molecule using the symbols for the elements and sub-scripted numbers.
A mortgage equation is the mathematical formula that a lender uses in order to determine the borrower's fixed monthly payment to pay off a mortgage loan over a period of time. The lender calculates a mortgage amount using a variety of factors including the total purchas...
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 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 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 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...