How To Calculate Your Mortgage Payment

[@TheOrganicChemistryTutor]

Final Exams and Video Playlists: www.video-tutor.net/

[@travelinman482]

This is not what I asked KZbin for. I asked what my total cost for a 20 year loan (with interest). Example: $25,000 × 10% down × 12% for 20 years= __________?

[@morganwu5561]

Watched you in high school, then all 4 years of university during my science degree, and now after graduating you're teaching us about life too...LITERALLY savings lives 🤣 Thank you!!🙏

[@sangmadewira4726]

Im still in high school 👀

[@mahalia_kendrick]

I just got approved for a $420,000 mortgage that would put me at about 3300 a month on a $80,000 salary. And what's even crazier is he said I could be approved for up to half a million. Like dude, that's over 3/4 of my take-home pay! We are going into a gigantic bubble where people cannot continue to afford their monthly payments..

[@Freddyjoh16]

I hear you. I was approved for 700k no debt and I’m like WTF??? This was when rates were at 6% but there’s no way I’d take out a loan that high. How the F are ppl paying for their house???? I can only reasonably afford a loan at 350k and a 550k house with 200k down. Taxes out the wazoo! 800-1k/month. The taxes alone will kill you!

[@Jessrobbie]

Very true! I've been able to scale from $15K to $89k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns

[@devoncampbell275]

​@@JessrobbieHow can I reach this adviser of yours? because I'm seeking for more effective investment approach on my savings?

[@Jessrobbie]

I usually go with registered and licenced representatives. ''BRITTNEY COHEN ROSE " for example has the best performance history (in my opinion) and does offers 1v1 consultation to her copiers which I think is amazing. I don’t know how many traders like that are there.>

[@mianortum]

​@@JessrobbieThanks, I just googled her name came up right away speaking of which [Britney Cohen Rose] . It looks interesting so far. I'm going to book a chat with her and see how it goes

[@ChristopherAbelman]

To rest of the 50% club (have not checked their home replacement coverage), after listening to David, I checked my coverage. House was bought a while back for $670k, insurance replacement coverage was about the same amount. After making a few inquiries

[@PennyBergeron-os4ch]

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@HildaBennet]

This is precisely why I like having an asset manager look over my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a manager for more than two years, and I've made over 85% of my initial amount/

[@FinnBraylon]

Do you mind sharing this particular coach you using their service?

[@HildaBennet]

’Sonya Lee Mitchell, is respected in her field. I suggest delving deeper into her credentials, as she possesses experience and serves as a valuable resource

[@FinnBraylon]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@devinotero1798]

Bro this dude does everything 😂

[@joaosousa2271]

truths

[@Rangerforyou]

FOR real I have been watching his vids since 9th grade

[@iwuvu5940]

Better man than me

[@tylerjensen1991]

I said the same thing!

[@ralphlaurenpolojerk]

😂

[@tylunday]

For others, you can simply use the PMT formula in excel, which is =PMT(r,n,P). Where r = monthly rate (.05/12), n = number of payments (360), and P = principal ($400k). Plug in your parameters into the excel formula and it does all the math for you, resulting in the same $2147 answer that this video calculates as well. This way of calculating your monthly payment does not equal your total mortgage payment of course, as you will have to factor in homeowner's insurance, property tax, etc. as applicable to your situation. Another important thing to note is that this way of calculating your monthly payment is assuming you have a fixed interest rate and constant monthly payments (no extra payments toward principal that you may make over the life of your 30-year loan).

[@aliciadavis8586]

I see how you got everything until you got to the final answer. How did you come up with the $2,147.29?

[@samanthahernandez6733]

My question is how do you get MP or how do you type it in the calculator il still confused that’s the only part I’m stuck on😢on the very last step

[@TheRealShawnte]

Why did you skip the last part? Went straight to the answer.

[@WellActualllyyy]

yeah now i cant figure out how he did it. does anyone know? ti-84 is giving a diff answer edit: use alpha Y= and select n/d. make sure you’re using negative sign and not the subtract symbol

[@eugeneking4844]

Exactly he lost me by going straight to the answer

[@lolilops54]

To people confused by the final step, the correct order is to do 1.00416 ^ -360 = x, then 1 - x = y, then 1666.6 ÷ y = MP. You might get slightly different results depending on how you choose to round the numbers, but without any rounding at all, this gives me 2,147.29.

[@BlueOmniView]

Thank you so much!

[@sebastiensabiote7416]

I was trying to find a formula for my spreadsheet and i"ve finally found it. Thanks

[@BlueOmniView]

Can you type out your formula in struggling with the power part on spreadsheets

[@belabardot5293]

Can you please show how you calculated the last part of the equation . All those negatives and parenthesis are confusing.

[@Comb-kp1yd]

When you go to do the to the power of -360 make sure to type it correctly. Type 360 then the negative icon which should be a +/- not the minus one.

[@bleonhill]

@@Comb-kp1ydhuh

[@dfygoh3215]

you explained the top part good but not the bottom part

[@immanuelm6763]

Totally unexpected, had to watch this, the organic chemistry tutor is a genius

[@kimmosmith5672]

I don't know if I'm slow but 2,147 x 12= 25,764 (that's with interest correct? ) if you times that 25k times 30 (years) equals 772,920 ? what am I missing ?

[@rolandroland1485]

So you pretty paying the bank over 200K 🤦🏿‍♂️

[@CVBrennan]

@@rolandroland1485 Being homeless never looked so good.

[@augustinennadozienwokocha8393]

That explains the “evil” in taking mortgage. It’s always skewed for the rich.

[@tyronewilson7890]

You’re not missing anything. That 700k+ is the total cost of the loan with interest. Principal is 400k so interest would add about 300k more.

[@jeremiah4267]

​@@tyronewilson7890Normalized robbery. If loans are abolished and everyone must pay in cash then house costs will drop to match what people can afford. Same for businesses. If businesses didn't have to pay back loans they would have higher profit margin and could competitively reduce their prices. Banks are leaching money on every level of society. Central banks also should be abolished.

[@ibisrodriguez3455]

I don’t understand how you calculated the bottom part of the formula. Are you multiplying the parenthesis with the 360 days.

[@georgesadler7830]

Professor Organic Chemistry Tutor, thank you for an outstanding video/lecture on How to Calculate Your Mortgage Payment. Morgage payments is a daily struggle on planet earth. This is an error free video/lecture on KZbin TV with the Organic Chemistry Tutor.

[@SKRecipes]

Thank you, really helpful but i don't know how to get the number in the end $2147.29, can I know the solution

[@econlinemarketingmalaysia4045]

Yes me too

[@mq46312]

Are there two different formulas for calculating mortgages repayments? The formula in this video is different to the one shown in a video from 3 years ago. Do they both yield the same result?

[@rrandd0]

In the 90s, I bought my first home in Miami with mortgage rates at 8-10%. We may not see 3% rates again. If sellers need to sell, prices might drop, leading to lower valuations. Many likely share this view.

[@Ravers-ly5xd]

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

[@dr.Morgann]

Home prices will come down eventually, but for now; get your money out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

[@FreyTp]

I’ve been worried sick about the current state of my portfolio, who is your advisor?

[@dr.Morgann]

"Kristin Amber Landis" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@FreyTp]

Thanks for the tip. I looked up her name online and found her page. I emailed and made an appointment to talk with her.

[@CalvinGPaye]

Anyone please help, how did he get the last answer?

[@daisygramajo8915]

please explain step by step how you entered the denominator in the scientific calculator because I am getting a different answer.

[@fahimasiddiqua5182]

you have applied for a mortgage of tk 60000 to finance the purchase of a new car.the bank will require you to make annual payments of tk 7074.55 at the end of the next 20 years.determine the interest rate on this mortgage? Pls give me solution

[@marydixon8759]

Can you please explain to me how you got $2,147.

[@Countdown420]

Thx so much🙏 I knew they were stitching me up, going to court next month x

[@jayk5704]

thank you so much, I am doing classes online with no teacher so I was so lost!

[@Ismeha]

The last bid is not clear

[@SherlCan0094]

EXACTLY! Glad to know I'm not on the slow bus alone🤣I wish he'd shown the actual calculator computations

[@InkDragon66]

Very informative and straight to the point! Awesome vid, thank you!!

[@totsiepie0412]

I’m so slow in Math , how did you get the answer from the last part? 1-(1.00415)-360????

[@SherlCan0094]

I'm stuck there as well. I think he ASSUMED we know mathematical jargon & symbols

[@lidig3636]

Should I include the points (fees) to the principal?

[@EmileosE-CommerceQuest]

My brain. It's melting 🤯😵‍💫

[@SherlCan0094]

🤣Mine has melted

[@amiraboodi2075]

Thank you very much. Your explanation was so clear and understandable. 😍👍

[@tahirimathscienceonlinetea4273]

Hi,I just want to make it more clear .Base on this math formula, Monthly payment Is going to change month by month because $400 loan is going to decrease over time. For example $400/30.12=400/360=10/9~$1000 ,so remaing balance in second month it will be ~399k means Mp=sometimes < previous months interest value.thus ,we will have a decent sequence of Monthly payment interest value on a monthly basis because the remaing balance of principal is going to be decreasing over 30 years .please can you reply to check what I have mentioned is correct or no?

[@theswagateer2806]

Yes

[@HN-db5cn]

Yes for the last month

[@cbrooks0905]

The way they calculate the payments is your payment stays the same no matter what you pay. It’s the interest and principal that shifts around. So if your mortgage is $400k your payments will be $2147.29. Now, out of that amount 1666.67 goes to interest and $480.62 goes to principal. Now next month your principal owed will be $399,519.37. Out of this month’s $2147.29 payment the interest paid will be $1664.66 and $482.63 will go towards principle leaving the balance at $399,036.74. Now let’s say you decide to make a $20,000 extra principle payment that same month. That would bring you principal down to $379,036.74. Now, even though you paid an extra $20k towards principle next month’s payment is still $2147.29, but the interest will be $1579.32 and the principal payment would be $567.97. So you can see the more you pay off the principal the less you pay in interest. I know this is how it works because I paid off a mortgage early and each month I’d calculate the interest and principal differences to make sure the statements were right. I don’t trust the banks. 😂

[@MrsGG-id1os]

@@cbrooks0905thank you for sharing.

[@lebaroudeur34]

Tell me if i'm correct but with your math, you borrow 400k at 5% for 30 years, you repay a total of 773k? I don't get the calcul there.

[@jottaran1731]

How you got 2,147.29 at the end can you explain plz I didn’t understand how you solve the last bracket

[@aliana9690]

iloveyou bro I cant survive with out your tutorials

[@AKI-ic1bh]

Can u explain how u calculated to $2,147?

[@amberpeterson7104]

I came here hoping to find an answer to that exact question, I had such high hopes at the beginning of the video but he did the same skip everyone else has done *cries*

[@MrMyspace6]

You didn't break it down enough for me. You didn't show the exact last step to get $2,147.29. The equation under the line is still not solved out for me. I cant get it.

[@nhitc6832]

here put this in your calculator exactly the way it's written: 400000 (0.05/12) / (1 - (1 + 0.05/12)^(-360))

[@MrMyspace6]

God bless you. Have a prosperous New Year. @@nhitc6832

[@Sirjobzy]

How can I calculate my expected monthly mortgage payment, if I am 1y3m into the mortgage and interest rates have gone high ?

[@legitbtx8232]

The thing that still doesn’t make sense for me is why do you end up paying $372,960 in interest? $2147 mp x 360 month = $772,920

[@turdburglar1612]

Because you have to pay off the annual interest before knocking down the prinicpal. In one year 5% of 400,000 is 20k, you will pay almost 26k in yearly mortage payments. but only 6k will go towards principle. The next year more will go towards principle.

[@jeremiah4267]

​@@turdburglar1612 you only "have to" because they made it that way. These leaches should be removed.

[@beruangkutub33]

So total monthly payment $2,147.29 x 360 pmt = $772,920 total payment after 30 years. Then this 772k - loan amount 400k = 372k in interest alone correct?

[@JGH-wn3tb]

An easier way to do this is take $400,000 times 0.05 and divide it by 12 and you get $1,667.

[@SherlCan0094]

😂🤣And here I am 12am wrecking my brain with this equation

[@AlexMartinez-ze2ev]

how he get the $2147

[@justcallmebrian793]

I was thinking to myself, there got to be a easier and faster way to do this. Thank you. He should just simplify it, and not make it overly completed. Who has time to write a whole equation in today world.

[@lolilops54]

Surely 400,000 x 0.05 / 12 gives you the amount you would pay in interest each month, not the total monthly repayment. Also, isn't the interest rate applied to the remaining loan amount each year, not the total amount? I would think that the 400,000 x 0.05 figure has no real significance.

[@mprrx]

Thank you, now to calculate the principal... ​@@lolilops54

[@Justin.ol9]

Very informative, appreciate it 🤝

[@nrshapiro]

Hi. Good review. I have a mortgage calculation that I need to solve. I would like a formula to calculate the net Present Value of the interest payment stream (so a payment that declines each montg for the term of the loan). I need it to calculate bank prepayment penalties. Any ideas?

[@Charles-in3zt]

Why would he not explain how to calculate the bottom part of the equation?

[@raulmishiyev]

What's odd to me is the lower the interest the smaller the denominator and therefore a larger payment (relatively). Imagine your nominator is the base payment (400,000 * interest/12) and K = 1/denominator. So K grows as the interest rate gets smaller (as the interest goes to zero the payment goes to infinity - plug in zero for r and see).

[@MahaXad]

Indeed. I haven't done the calculations, but maybe there's an optimal loan you can take to minimize the relative monthly payment.

[@CharlD.2005]

Thank you so much for explaining thoroughly

[@shantellwilliams498]

this video helped me big time....job well done

[@marvinpolanco2227]

This would be with monthly compounding no?

[@nhitc6832]

It's compounded monthly

[@eugeneking4844]

I can't believe all of these comments and the people that saying good job but nobody explained how he got to 2147 and 29 cents. This is his video and I'm sure he seen all of the comments and didn't try to solve the end

[@soroushmoallemi774]

This monthly payment includes interest and principal. Could you please provide more information on how we decide how much of it goes toward the principal?

[@tyronewilson7890]

Principal is the total loan amount before interest. To calculate principal In monthly payments, (in this example) divide 400,000 by 360.

[@jhonnolas7799]

we don't understand the last part, you didn't explain

[@truthlover6079]

Why are they including loan term ? Just to increase the repayments

[@jamieperez320]

Thank you, this was such an easy learn, the way you explained it.

[@jennifersalazar6837]

Why is my end answer coming to $2,169 and not $2,147.29? I’m working this by hand, no programs.

[@TheHelena54]

I got everything except the last part. How did you come up with the $2147. 29 I divided 1,666.66 by 1.00416 I got $1659.75 + $360= $2019.76 What am I missing?

[@Dziricani]

You made a mistake in your denominator. Here's how you plug in the whole formula on your calculator (as shown in the video at 4:10mn): 1,666.666÷(1−(1.0041666)^(−360))

[@h.waltercabrales5804]

I lost my job and I haven't had much luck finding a job for the past 3 months. I used up my emergency fund and now in a position where I am unable to pay next months mortgage unless I luck out and find a job. Very stressful situation here overall, I want to sell my condo however even if I am selling it, I am unable to pay of mortgage while the condo is up for sale. Very scary situation.

[@Unique-Agatha]

Lender at a Big 4 here: talk to your bank ASAP. In most situations, they will try to work out an agreement with you. They are not in the business of foreclosing, they don’t want to own homes and take people to court unless absolutely necessary. Secondly, get a job, any job ASAP. It will show you’re willing to pay some of your mortgage. Drive Uber. Anything that brings in money.

[@h.waltercabrales5804]

Thank you! I will call them as soon as they open. I didn't think something like this was possible, fingers crossed my bank will work with me.

[@goodman5350]

May I know what investment you are on. I recently inherited some money, I've got quarter million to invest, but I want to ensure profits.

[@h.waltercabrales5804]

How do you mean "Pay of mortgage in full?" What did you invest in

[@goodman5350]

Impressive! What is the best way to get started with her

[@bleonhill]

So the bottom calculation look like this? 1 multi +/- 1.004166666 multi +/-360 ????

[@eugeneking4844]

I think he used a mortgage calculator at the end that's why he didn't explain it because he got confused himself

[@PaulMichaelJarre]

Do you have the source of this equation? Where did you find this?

[@OYATca]

So basically “5%” isn’t actually 5%, its 25% . 5% of 400K is 20K. Which makes the mp $1166.67. If the mp is $1666.67 then the total loan becomes 500K after interest (adding 100k) meaning the interest is 100k total which is 25% of 400k

[@jeremiah4267]

exactly this. its so misleading. I bet a ton of people get mortgages and expect to pay a total of Home cost plus 5% of home cost but end up paying up to 75% of the homes original price in interest.

[@chy7473]

@@jeremiah4267 not if youre able to pay extra

[@royalty2924Love]

I believe that's what Robert Kiosaki was saying in his book 'Cashflow Quadrant'

[@kevingeorge1539]

U lose me at the very end did u multiplied or divided!! to arrive at MP of $2,147.29?

[@aaryamangupta]

I got this error: ‘This number is too big to be calculated, get a job and pay of your debts nerd’

[@debypoole7079]

Thank you for this, I was able to FINALLY understand!

[@JGH-wn3tb]

Is there an easier way to calculate this?

[@trogers3497]

But what about having high credit score around 700+ doesn't that do something to lower payments

[@nhitc6832]

it lowers your APR thus reduce your monthly payment

[@menglimarrero4296]

What if 3months term, Payments weekly? 10%/monthly?

[@jeng495]

You did not show how to calculate after you plugged in the numbers, why not?

[@nhitc6832]

because that's basic math operations you learned in 5th grade math. This video isn't about how to do basic math. It's about the concept of amortization

[@catiz2718]

I don understend where did you get the 1 ????

[@CalvinGPaye]

Bro, you skip the last step😢. How did you get to the answer?

[@jimgd0601]

WHY DID YOU SKIP THE LAST STEP WHY ???

[@KingsleyOkeze]

First time I'm watching your video the same day you post it (clicked on this 5minute after upload). You don't know me, but you've got no idea how you've impacted me. Thanks for all you do!

[@mahindrabankay3814]

I don't understand how u get the answer at the last step

[@alenm4780]

Thankyou, it was helpful.

[@amariemai5828]

This ending is very frustrating and a waste of time trying to figure out. You lost me in the ending by not fully walking through how you came to your complete conclusion. Thanks for the video just please walk through ALL of your steps next time

[@chrissystewart6268]

I need to learn this very important this my first time learning

[@SolomonOkojie]

Pls which writing tablet do you use

[@Discovery_and_Change]

So we'd end up paying $773,000 for the $400,000 home.

[@nhitc6832]

Yes. scary, isn't it :))

[@alexamg6675]

Don’t understand how to plug it into the calculator

[@asylicate2701]

i really wish you would work out the math with the exponents, my calculator doesn't spit out the right answer. Maybe I am doing them wrong, but if someone would just take 5 seconds to NOT skip it, that would be awesome. My MyMathLab just assumes I know how to do them. lame

[@studentaccount4354]

Can you do one on how to calculate graduate loans?

[@naphjuma6172]

💯💯well explained

[@eugeneking4844]

If it's well explained then explain how he got the ending number

[@begley09]

You lost me at @3:39 1+0.05 divide by 12 does not equal 1.00416*

[@Nelsonr1978]

Divide 0.05 by 12 first and it’ll give you 0.004166 then add 1 to that and it’ll give you 1.00416.

[@darylwilson2969]

excellent explanation!

[@avh8639]

Thanks bro!

[@qualitymusic7477]

How you play with peoples brains like this men😂 make it simple. The idea is the result.

[@SolomonOkojie]

Pls what I the name of the microphone you use

[@MinEspoir]

youre solving it by not showing it fully😢😢😢😢😢 send helpppppppp

[@CVBrennan]

At $2147 monthly, we are talking $25,767 annually... over 30 years would be $773,024 paid back on a $400,000 loan. Does the bank really make double their investment? Holy Fucking Shit Balls.

[@tyronewilson7890]

Usually I see more than double with 6-7% interest rates. 5% is pretty good

[@jeremiah4267]

Banks should be abolished.

[@nhitc6832]

amazing, isnt it.

[@richbenzo8437]

In other words take the amount you need for the house and take that number multiple it by 93% and thats the interest you need to pay... but how is this the math for them to make money on you but if your money is in the bank building interest they dont use this equation?

[@WellActualllyyy]

keep getting wrong answer at last step using ti-84… please do it step by step

[@nhitc6832]

you're probably missing parentheses somewhere.

[@RabbitConfirmed]

So you're paying 773’024.4 for a 400'000$ house?

[@nhitc6832]

yes, banks are greedy!

[@v1nosince91]

what about the property tax lol

[@nhitc6832]

it's added on to the monthly payment.

[@angelineestigoy8640]

The voice bro💖

[@ewurahaizel6533]

Please can you do more lipid metabolism videos? Thanks

[@RoofDRyxe306]

So you are paying an extra 373,000K in interest onto of the 400K. Damn. Midas just work 6 years straight save cash and save 300K to put down.

[@jeremiah4267]

What im doing right now, saving 3k a month :D

[@may0dan]

Thank you so much

[@farmfitnesspham4913]

Why it look like algebra 3 math formula

[@RaneroDz]

what if only first year r=3% and for other years r=5%

[@nhitc6832]

you calculate the remaining principle after a year and use that as initial principle. And then recalculate with 5% interest and 348 payments

[@RR_DM]

IT MIGHT BE EASIER FOR YOU TO WORK WITH PERCENTAGES THAT ARE MORE SIMPLE AND GO FROM THERE: 10% of an amount