Seems like it should be a simple formula, but my googling is failing me... I'm trying to figure out what a lender uses to calculate the following:
Inputs: mortgage balance (after downpayment), interest rate, and loan term
Output: monthly payment (principle and interest)
Is it not as simple as plugging it into a mortgage calculator? I'm guessing you could even Google an amortization calculator if you wanted to break it down by payment over the length of the loan.
Seems like it should be a simple formula, but my googling is failing me... I'm trying to figure out what a lender uses to calculate the following:
Inputs: mortgage balance (after downpayment), interest rate, and loan term
Output: monthly payment (principle and interest)
Is it not as simple as plugging it into a mortgage calculator? I'm guessing you could even Google an amortization calculator if you wanted to break it down by payment over the length of the loan.
@Tom Seigold it is not a simple calculation. What is simple as mentioned above is use a mortgage amortization schedule. Again as said above just enter, amount, interest rate the the number of years into an Amortization schedule and it will spit out your answer.
Amortization is the rate at which a loan is paid down. You may have heard that interest is front loaded, or that you pay more interest up front in a 30 year loan, but that is deceiving. It implies that banks somehow manipulate what is owed up early in the mortgage. The reality is you pay the exact same rate for the entire loan. However that is hard to calculate, because the amount you owe changes every month.
An amortization chart takes it all into consideration and makes the answer easy.
Seems like it should be a simple formula, but my googling is failing me... I'm trying to figure out what a lender uses to calculate the following:
Inputs: mortgage balance (after downpayment), interest rate, and loan term
Output: monthly payment (principle and interest)
Hi Tom, this is the calculation website I use for my real estate here in Columbus and Cincinnati area. It gives you P &I based on your imputs. https://www.calculator.net/ren...
Thanks everyone. The reason I'm looking for a formula instead of using an online tool is because I'm developing some software for my personal use where I want to implement this formula, so that I can import a property and see (among many other things existing calculators/spreadsheets don't offer) what the monthly payment would be.
You want formulas instead? Pretty sure I just did it in Google sheets last time because I wanted to double check the numbers. Wasn't down to the cent but fairly close.
You want formulas instead? Pretty sure I just did it in Google sheets last time because I wanted to double check the numbers. Wasn't down to the cent but fairly close.
That would be awesome if you can send them over. I'm not sure how accurate this other code I found is.
Can't seem to attach files here... After inputting below formulas just drag Row14=Payment Period/Principal/Interest/Total/Net Balance down to Row 373 for 360 Payment Periods
Monthly payment of $2,147.29=B3*((E3/12)*(1+E3/12)^B5)/(((1+E3/12)^B5)-1)
Payment Period of 1 =A13+1
Principal of $480.62=$B$7-C14
Interest of $1,666.67=E13*$E$3/12
Total of $2,147.29=sum(B14:C14) Net Balance of $399,519.38=E13-B14