Calculating mortgage payments

1. Calculating mortgage payments (Paying back your student loans)

2. ^(T*12) Monthly interest rate *(1+monthly interest rate) Loan * ^(T*12) ((1+monthly interest rate) -1 )

3. ^(T*12) Monthly interest rate *(1+monthly interest rate) Loan * ^(T*12) ((1+monthly interest rate) -1 )

4. ^(T*12) Monthly interest rate *(1+monthly interest rate) Loan * ^(T*12) ((1+monthly interest rate) -1 ) Annual rate divided by months

5. (T * 12) ) rate rate months months ( rate 1+ months ( ) ( 1+ x (T * 12) ) - 1

6. (T * 12) ) ( 1+ ( ) ( 1+ x MIR MIR (T * 12) ) - 1 MIR MIR = Monthly Interest Rate

7. Here is a sample problem: 30 year mortgage loan $60,000 annual interest rate of 12%, what is the monthly payment?

8. .12 .12 12 12 (1 + ) - 1 .12 12 (T * 12) (--) (1+---) x (T * 12)

9. .12 12 (1 + ) - 1 .12 12 (T * 12) (1+---) (--) .01 x (T * 12)

10. (1 + ) - 1 .12 12 (T * 12) (--) (1+---) .01 .01 x (T * 12)

11. (T * 12) (--) (1+---) .01 .01 x (T * 12) (1 + ) - 1 .01

12. (T * 12) (--) (1.01) .01 x (T * 12) (1 + ) - 1 .01

13. (T * 12) (--) (1.01) .01 x (T * 12) (1.01) - 1

14. (360) (--) (1.01) .01 x (T * 12) (1.01) - 1

15. (360) (--) (1.01) .01 x (360) (1.01) - 1

16. (--) (35.9496) .01 x (360) (1.01) - 1

17. (--) (35.9496) .01 x (35.9496) - 1

18. Move the decimal 2 places left .35.9496 (35.9496) - 1

19. .359496 35.9496- 1 Subtract 1

20. .359496 34.9496 Divide the fraction

21. .010286

22. $60,000 * .010286 = $617.17

23. Monthly payments are: $617.17

24. End