| | | | | $104.12 $98,981.79 |
| Amortization Schedule Calculator | | | | 11 $494.91 |
| | | | | $104.64 $98,877.15 |
| Your mortgage is recalculated each month based on | | | | 12 $494.39 |
| how much principal is paid down. Your mortgage | | | | $105.16 $98,771.99 |
| payment will always stay the same, but the principal | | | | First of all, in the amortization schedule the |
| goes up and the interest will come down as time | | | | “Interest payment” and “principal |
| goes on. Example below: | | | | payment” columns will always equal your monthly |
| Enter this information into My Mortgage Calculator. | | | | payment amount of $599.55. Some of it will go |
| Mortgage amount - $100,000.00 | | | | toward the $100,000 that you owe, and the rest of |
| Fixed Interest Rate - 6.0% | | | | it goes toward interest. Here’s how it works… |
| Years - 30 | | | | Notice that the amount you owe is lowered by the |
| Based on that information you will see that the | | | | amount of principal you pay each month (100,000 - |
| monthly mortgage payment is $599.55 and over the | | | | 99.55 = 99,900.45) If you pay an extra $200.00 |
| course of 30 years you will have paid $115,838.19 | | | | toward principal then it would be 100,000 - 99.55 - |
| JUST in interest! That’s more than the cost of | | | | 200.00 = 99,700.45. |
| the home itself! It’s only natural to try and | | | | The interest payment goes to the bank for loaning |
| reduce that ridiculous number! First, we need to | | | | you that specific amount of money. The bank tells |
| understand it by looking at the information from the | | | | you the yearly interest rate (6%) for added |
| mortgage calculator. | | | | confusion because it’s actually calculated monthly. |
| The graph below shows you the breakdown of each | | | | Take your yearly interest rate and divide it by 12 (12 |
| payment you make over the first year. | | | | months). You can plug those numbers into my free |
| Monthly Payment - $599.55Month | | | | mortgage calculator or see the graph above. 6% / 12 |
| Interest Principal | | | | months = 0.50% per month. So you owe 100,000 x |
| Remaining Balance | | | | .005 (.50%) = $500.00 in interest for the first month |
| 1 $500.00 | | | | (See above graph). So the less money you owe the |
| $99.55 $99,900.45 | | | | bank, the less interest you pay each month. |
| 2 $499.50 | | | | That’s why paying principal down faster is |
| $100.05 $99,800.40 | | | | better. |
| 3 $499.00 | | | | Like I said before, each month the mortgage |
| $100.55 $99,699.85 | | | | payment is recalculated so the amount of principal |
| 4 $498.50 | | | | you pay each month is up to you! No matter how |
| $101.05 $99,598.80 | | | | you look at it, you owe the bank $100,000.00 and |
| 5 $497.99 | | | | while you owe that money they want something in |
| $101.56 $99,497.24 | | | | return (Interest). I believe banks are very fair with |
| 6 $497.49 | | | | the interest rates they offer, whatever they might |
| $102.06 $99,395.18 | | | | be. Otherwise you would have to save $100,000.00 |
| 7 $496.98 | | | | to buy a home, rather than just the down payment, |
| $102.57 $99,292.61 | | | | which means most people wouldn’t ever buy a |
| 8 $496.46 | | | | home at all. |
| $103.09 $99,189.52 | | | | Please email me with any questions you might have |
| 9 $495.95 | | | | about an amortization schedule, an interest rate or a |
| $103.60 $99,085.92 | | | | mortgage calculator and I’ll do my best to |
| 10 $495.43 | | | | answer them. |