This page helps you calculate fixed monthly mortgage payments. The formula being used is:
P = L[c(1 + c)n] / [(1 + c)n - 1]
P = Your fixed monthly payment.
L = The total loan amount.
c = The interest rate. NOTE: If c = 6%, c is calculated as (0.06 / 12) ==> 0.005
n = The term or number of months of the loan.
For more information about this formula, check out the Mortgage Professor's website.
For example, if your loan amount is $121,200 (L = 121200), and your interest rate is: 2.875% (c = 0.02875/12), and the term of your loan is 180 months or 15 years (L = 180), then your fixed monthly payment will be $829.72 dollars, (P = 829.72)
To run this example scenario, press the Run Example Scenario button on the right.
To run your own mortgage scenario, enter the appropriate values on the right and press the Calculate Your Monthly Payment button.