All calculations are based on standard mortgage formulas. For more information, please refer to your financial advisor or mortgage provider.
The monthly payment is calculated using the formula: P = [r*PV] / [1 - (1 + r)^-n], where P is the monthly payment, r is the monthly interest rate, PV is the loan amount, and n is the number of payments.
Suppose you borrow $200,000 at a 5% annual interest rate for 30 years. Using our calculator, your monthly payment would be approximately $1,073.64, with total payments of $386,511 and total interest of $186,511.
A mortgage is a loan used to purchase a home, where the property itself serves as collateral.
Interest is generally calculated on a monthly basis using the annual rate divided by 12 months.