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Showing posts with label Real Estate. Show all posts
Showing posts with label Real Estate. Show all posts

Saturday, September 20, 2008

Calculation of Monthly Mortgage Payments

With mortgages, we want to find the monthly payment required to totally pay down a borrowed principal over the course a number of payments. The standard mortgage formula is:


Monthly Payment = monthly payment 1
where P = Principal
i = Interest over Payment Frequency
n = No. of monthly payments

 

Similarly, the monthly mortgage payments can also be calculated by using the following formula:


monthly payment 2