How To Calculate A Mortgage Payment Amount - Mortgage Payments Explained With Formula

[@libra8993]

this is literally the best video on KZbin to explain this particular equation. you have won the internet sir

[@davidcooper7339]

Home run with this mortgage calculation- explanation. Great teacher!

[@Tennis-3582]

This is very informative, thanks

[@chrisweber1133]

Hello, thank you for this very helpful information, I am creating an excel spreadsheet and everything works out until the formula around the 2:47 mark in you video, can you please help with this formula? I come up with $749.00. Everything else i get the same numbers as you....thanks for any help.

[@legendaryrscopridge]

Hey dude, thanks for sharing!

[@Someone-lc6dc]

What does 1 stand for in the formula?

[@olgajimenez3713]

Very helpful, thanks.

[@SuperSamboh]

thank you good explanatio

[@svwtsvfcb]

If I had a payment plan where I pay yearly instead of monthly, can I still use this formula and simply replace n with 1 instead of 12? In other words, I only take into account the yearly interest rate and not the monthly one?

[@dalehjify]

Is this the interest only payment? there are two options within a mortgage which is interest only and repayment mortgage. How do you calculate both the interest only and mortgage repayment cost?

[@whatsupdude2778]

Hello Dale HJ, this video is the calculation of the total mortgage payment (interest + principal). An amortization table will show the interest paid and principal paid separately. I have that topic on my list of videos to do.

[@Raviticus]

But why is that formula used? Couldn't it just be: (principal + interest amount) / 360 = monthly payments?

[@gracethroughfaith4415]

This is the exact same question I have!!

[@bethanyday9291]

I have to calculate amount for a house, 30 year loan, 5% interest rate, and a down payment of 5,000. I get the formula above but how do i calculate the down payment.

[@mprrx]

If I am correct, subtract the down payment out of the loan amount. Multiple if FHA minimum downpayment 3.5%* principal amount=downpayment

[@Someone-lc6dc]

This formula seems overly complicated. The video doesn't explain why it has to be used...

[@ygamilive]

Stupd