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