# How to calculate mortgage payment?

To calculate your mortgage payment, you will need to know the following information:

1. The amount of the loan: This is the total amount you are borrowing to purchase your home.
2. The interest rate: This is the percentage of the loan amount that you will pay in interest.
3. The loan term: This is the length of time you have to pay back the loan, usually expressed in years.
4. The frequency of payments: Most mortgages require payments to be made monthly.

Once you have this information, you can use the following formula to calculate your mortgage payment:

M = P[r(1+r)^n]/[(1+r)^n-1]

Where:

M is the mortgage payment P is the loan amount r is the monthly interest rate (the annual interest rate divided by 12) n is the number of payments (the loan term in years multiplied by 12)

For example, let’s say you are borrowing \$200,000 at an annual interest rate of 3.5% for a loan term of 30 years (360 payments). Your monthly interest rate would be 3.5%/12 = 0.2917%, and your mortgage payment would be:

M = \$200,000[0.002917(1+0.002917)^360]/[(1+0.002917)^360-1]

M = \$898.09

This means your monthly mortgage payment would be approximately \$898.09.

Note that this is just a rough estimate of your mortgage payment, and the actual payment may vary depending on additional factors such as taxes, insurance, and any fees associated with your loan.

## How to calculate mortgage interest

To calculate the mortgage interest on a loan, you will need to know the following information:

1. The amount of the loan: This is the total amount you are borrowing to purchase your home.
2. The interest rate: This is the percentage of the loan amount that you will pay in interest.
3. The loan term: This is the length of time you have to pay back the loan, usually expressed in years.
4. The frequency of payments: Most mortgages require payments to be made monthly.

To calculate the total mortgage interest you will pay over the life of the loan, you can use the following formula:

Total Interest = P x (r/12) x n

Where:

P is the loan amount r is the annual interest rate n is the number of payments (the loan term in years multiplied by 12)

For example, let’s say you are borrowing \$200,000 at an annual interest rate of 3.5% for a loan term of 30 years (360 payments). Your total mortgage interest would be:

Total Interest = \$200,000 x (0.035/12) x 360

Total Interest = \$70,800

This means you will pay approximately \$70,800 in mortgage interest over the life of the loan.

Note that this is just a rough estimate of the mortgage interest you will pay, and the actual amount may vary depending on additional factors such as taxes, insurance, and any fees associated with your loan.

## What is mortgage ?

A mortgage is a loan that is used to finance the purchase of a home. When you take out a mortgage, you agree to pay back the loan over a set period of time, usually 15 or 30 years, with interest. The interest is a percentage of the loan amount that you pay to the lender for the privilege of borrowing the money.

To get a mortgage, you typically need to provide the lender with information about your credit history, employment, and income. The lender will use this information to determine whether you are a good risk for a loan and, if so, what interest rate to charge you.

There are many types of mortgages available, including fixed-rate mortgages, adjustable-rate mortgages, and government-backed mortgages such as FHA loans and VA loans. Each type of mortgage has its own set of terms and conditions, so it’s important to shop around and compare different options before deciding on a mortgage.