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Use Mortgage Amortization Calculator to Save Money

Posted by Sellect Realty on May 16, 2017
| 6 Comments

Mortgage Amortization Calculator is a most famous calculator and you can see it on many sites. The basic functionally of Mortgage Amortization Calculator is, to tell you how much principal and interest you will pay at the time of the loan and in future.

What Does Mortgage Amortization Mean?

A major part of the mortgage process is,

  • Purchase Price
  • Interest Rate
  • Down Payment Amount

This process helps us to determine the mortgage or loan amount and how it will be funded. This schedule or process is known as an Amortization.

Amortization basic definition is, pay your principal and interest on a recognized schedule and to reduce the balance, you should submit your scheduled payments on time then mortgage will be paid off by a given time.

The each month’s interest and principal payments history are referred to an amortization schedule.

Mortgage Amortization Calculator Annual Payments

How Does Mortgage Amortization Calculator Work?

You can see this calculator on many websites and it is very helpful. According to mortgage amortization calculator, it will support you determine how much of your monthly scheduled payments will go to the principal and how much will go to the interest.

Mortgage amortization calculator is intended to allow you to check out how much of a monthly payment is required to make your home mortgage.

It will also offer you with full details about how much of the total cost of your mortgage or loan and the interest will be you pay it off.

There are many ways when mortgage amortization calculator can work for you and you should take full benefit of this calculator.

Mortgage Amortization Calculator With Dates

How Does an Amortization Loan Work?

Amortization ensues when you pay your generally monthly or schedule payments over a time with regular and equivalent payments. This payment goes to,

  • The Interest Cost
  • Loan Principal which reduce the mortgage balance

When you take a long-term mortgage or loan at the beginning then your interest cost is at its peak or highest level and you just submit or pay the lowest amount of balance at that time.

As the time goes on, then your each payment goes to your principal and each month you pay less amount of interest.

After the definite amount of time, your last loan payments will be wage off the mortgage balance. For example, after the 30 years or 360 scheduled payments, you will pay off a 30 years loan or mortgage.

Mortgage Amortization Calculator Current Balance

Mortgage Amortization Schedule Calculator:

The mortgage amortization calculator is also known as an amortization schedule calculator. You can estimate your scheduled mortgage repayments and also regulate that how much of repayments will go towards the interest and principal.

To use the calculator, just enter your,

  • Mortgage or Loan Amount
  • Interest Rate
  • Loan Terms Start Date
  • Repayments Start Date

And then click on the calculate button, to get your desired result.

Mortgage Amortization Schedule Chart

 

Mortgage Amortization Sample Table:

The given will show the mortgage amortization schedule for the beginning and end of the mortgage. This is a $20,000 five year mortgages or loan with 5% interest rate and monthly payments.

 

Months

Balance(Beginning)

Payment

Principal

Interest

Balance(End)

1 $ 20,000 $ 377.42 $ 294.09 $ 83.33 $ 19705.91
2 $ 19705.91 $ 377.42 $ 295.32 $ 82.11 $ 19410.59
3 $ 19410.59 $ 377.42 $ 296.55 $ 80.88 $ 19114.04
4 $ 19114.04 $ 377.42 $ 297.78 $ 79.64 $ 18816.26
. . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . .
57 $ 1494.10 $ 377.42 $ 371.20 $ 6.23 $ 1122.90
58 $ 1122.90 $ 377.42 $ 372.75 $ 4.68 $ 750.16
59 $ 750.16 $ 377.42 $ 374.30 $ 3.13 $ 375.86
60 $ 375.86 $ 377.42 $ 374.29 $ 1.57 $ 0

Credits: thebalance.com

This mortgage amortization table shows the all process of interest and principal payments with the shortest time from beginning to end balance.

Mortgage Amortization Calculator Formulas:

We calculate the monthly payment and interest through the mortgage amortization calculator but many people want to know that how to calculate the loan balance and schedule or monthly payment through a formula.

Here are some formulas,

  • P = L[c(1 + c)n]/[(1 + c)n– 1]

If you want to calculate the fixed monthly or schedule payment p with amortize loan L and n numbers of months with the interest rate c per month then use above formula to get a result. 

  • B = L[(1 + c)n– (1 + c)p]/[(1 + c)n – 1]

If you want to calculate the remaining loan balance B after p months of with fixed payment loan then use above formula to get your output.

  • L – F = P1/(1 + i) + P2/(1 + i)2+… (Pn + Bn)/(1 + i)n

If you want to calculate the Annual Percentage Rate (APR) use above formula. Where,

L = Loan Amount

F = Lender Fees

P = Monthly Payment

Bn = Balance in month n

n = Months

i = IRP ( a special case of APR)

Mortgage Amortization Excel Formulas:

Microsoft Excel also helps us to calculate the mortgage amortization calculation. Some useful formulas are given below,

  • ISPM

Interest Amount paid during the Scheduled Time.

  • PMT

Periodic Payment Amount

  • NPER

The Numbers of Payment

  • CUMIPMT

Cumulative Interest Payment

  • CUMPRINC

Cumulative Interest Principal

  • EFFECT

Effective Annual Interest Rate

Amortization Formulas xlsx

Credit: vertex42.com

Save the Money With Interest Rates:

During the time you have a loan; you know that your home cost is nothing as compare to that money you will pay for it in interest. Take some time to use mortgage amortization calculator and you will see a major difference.

If you want to compare the two different banks and you surely go with one that you have always done business with and save you with their lower rates.

Mortgage Amortization Calculator Printable

Mortgage Amortization Calculator – The Loan Term:

Use the mortgage amortization calculator to figure out what is the difference in the loan if you plan to submit a 30-year mortgage or loan.

You can save thousands of dollars during the interest if you can pay for to go with the 20 to 25 year mortgage or loan.

The important point is that you should go with lowermost possible terms of the loan which you can pay easily and the mortgage amortization calculator will tell you how much money you save during the interest.

Mortgage Amortization Loan Calculator

Principal versus Interest:

You can save the money if you see how much you will pay monthly in interest as compare to the principal and through the mortgage amortization calculator.

As you know that at the beginning of your mortgage or loan, you will pay frequently interest lowest on the loan but when you get close to end balance then you see that principal amount being down on the loan.

The mortgage amortization calculator can show you the right result if someone forces you to pay some extra amount each year.

This tool has many benefits and most important feature of this mortgage amortization calculator is how much length of your loan with the scheduled time per months.

Don’t take tension about the extra amount you will pay, use this free tool and get the accurate results.

 

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