Docstoc

Amortization-Schedule-Calculator73

Document Sample
Amortization-Schedule-Calculator73 Powered By Docstoc
					        Amortization Schedule Calculator




mortgage calculator
 Understanding an amortization schedule by using my free mortgage
calculator A mortgage amortization schedule is broken down on a
monthly basis to show you exactly what youre paying the bank each
month and how much you still owe I could probably survey 100
people and 50 of them wouldnt even know how much they owe on
their mortgage These people are going to be taken advantage of at
some point in the mortgage process With some basic knowledge on
mortgage calculators and interest rates you can understand when
someone might be trying to trick you Your mortgage is recalculated
each month based on how much principal is paid down Your
mortgage payment will always stay the same, but the principal goes
up and the interest will come down as time goes on Example below:
Enter this information into my mortgage calculator
  Mortgage amount - $100,000 00 Fixed Interest Rate - 6 0% Years
- 30 Based on that information you will see that the monthly
mortgage payment is $599 55 and over the course of 30 years you
will have paid $115,838 19 JUST in interest! Thats more than the
cost of the home itself! Its only natural to try and reduce that
ridiculous number! First, we need to understand it by looking at the
information from the mortgage calculator The graph below shows
you the breakdown of each payment you make over the first few
months Monthly Payment - $599 55 Month -Interest - Principal -
Remaining Balance $100,000
00 Month 1 - $500 00 - $99 55 - $99,900 45 Month 2 - $499 50 -
$100 05 - $99,800 40 Month 3 - $499 00 - $100
55 - $99,699 85 First of all, in the amortization schedule the Interest
payment and principal payment columns will always equal your
monthly payment amount of $599 55 Some of it will go toward the
$100,000 that you owe, and the rest of it goes toward interest Heres
how it works Notice that the amount you owe is lowered by the
amount of principal you pay each month (100,000 - 99 55 = 99,900
45) If you pay an extra $200 00 toward principal then it would be
100,000 - 99
55 - 200 00 = 99,700 45 The interest payment goes to the bank for
loaning you that specific amount of money The bank tells you the
yearly interest rate (6%) for added confusion because its actually
calculated monthly Take your yearly interest rate and divide it by 12
(12 months) You can plug those numbers into my free mortgage
calculator or see the graph above 6% / 12 months = 0
50% per month So you owe 100,000 x 005 ( 50%) = $500 00 in
interest for the first month (See above graph) So the less money you
owe the bank, the less interest you pay each month Thats why
paying principal down faster is better
  Like I said before, each month the mortgage payment is
recalculated so the amount of principal you pay each month is up to
you! No matter how you look at it, you owe the bank $100,000 00
and while you owe that money they want something in return
(Interest) I believe banks are very fair with the interest rates they
offer, whatever they might be Otherwise you would have to save
$100,000 00 to buy a home, rather than just the down payment,
which means most people wouldnt ever buy a home at all Please
email me with any mortgage calculator questions you might have
about an amortization schedule, an interest rate or a mortgage
calculator and Ill do my best to answer them
mortgage calculator

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:10
posted:7/16/2012
language:English
pages:9
Description: 00 Month 1 - $500 00 - $99 55 - $99,900 45 Month 2 - $499 50 -