Mortgage Amortization Calculator
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The Mortgage Amortization Calculator can help you get a read on what the monthly
payments will be for any amortized loan, such as a home mortgage. Amortization spreads
your interest cost evenly across the entire repayment schedule, giving you a predictable
monthly bill, so you can plan your finances with confidence.
The "Loan Amount" and "Term" fields are straightforward: simply enter the total
loan balance and term length of the mortgage loan you want to examine. The "Interest
Rate" field should show the annual interest rate or the APR, which includes closing
costs and mortgage points. The APR will give you a truer measure of the real loan
cost, and is a great tool for evaluating different loan options.
Hit the "Calculate" button when you're happy with the inputs, and you'll be presented
with a monthly schedule of amortized loan payments, broken down into principal and
interest payment amounts, and a running total of the remaining balance. Add the
principal and interest portions of each payment to arrive at your monthly bill,
excluding property tax and insurance costs that are often rolled into the mortgage
payments and handled by your loan provider.
With this tool, you can easily compare the effects that different interest rates
or loan terms will have on your monthly payments. For instance, a $125,000 loan
with an 8 percent interest rate and a 30-year repayment term will result in a $917.20
bill every month. Lowering the interest rate to 7 percent gives you an $831.63 bill
instead, and saves you thousands over the life of the loan.
The Mortgage Amortization Calculator is an invaluable tool for anyone with a mortgage-which
is just about everyone!