Refinancing Home Mortgage
In: Mortgage Payment
1 Apr 2010For example what’s the monthly mortgage payment for $126,900 home at 5.5% interest rate, on a FHA 30 yr fixed.
A written out formula would be really helpful thanks!!!
This is about mortgage information questions.
5 Responses to can someone explain to me a simple formula to find a monthly mortgage payment?
mbrcatz
April 1st, 2010 at 3:40 am
There are online calculators, but basically, it’s going to be about 1% of the amount you borrow.
Tony
April 1st, 2010 at 3:50 am
Your mortgage payment will differ slightly than the simple interest formulas that are out there. Your mortgage payment will most likely include principal, interest, taxes, MIP (mortgage insurance premium).
If you gather the amount of taxes due or paid on the residence in the past year, that’s how much you’ll need to have in escrow. Also, calculate 1 to 1.25% of your principal in MIP. Add all of this plus principal and interest and you have your monthly mortgage payment.
Sounds like a lot doesn’t it?
Good luck!
Judy
April 1st, 2010 at 4:42 am
Here’s a better deal than a formula – google “mortgage calculator” or go to http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx and key in the info – then you can use it for any amount, any rate, and it’ll do the math for you
North Shore MA Agent
April 1st, 2010 at 5:22 am
Google “Mortgage Calculator”
real estate guy
April 1st, 2010 at 5:41 am
if you have a factor chart http://www.harpfinancial.com/AmortizationChart.htm
you can figure out any principle/interest payment.
formula:
126,900*96.5% loan = 122,460 loan (assuming a 3.5% downpayment)
loan amount/1000 * factor = payment
122,460/1000 = 122.46*5.68 = 695.57 a month
PLUS you would need to add the taxes and fire insurance each month
PLUS you will also have MI insurance.