=-PMT(8%/12,360,139000)
And our answer is $1020 a month. But wait, your mortgage payment also includes taxes and insurance. To find amount of the taxes, call the County Tax Assessor. To find the cost of insurance, call an insurance agent and get a quote.Let's say that taxes are $2500/year and insurance is $1100/year. That's $3600/year together, or $300/month. So your total monthly mortgage payment is $1320 ($1020 from what we figured earlier, plus $300 for taxes and insurance.)One more thing: If you put less than 20% down, you'll probably have to pay for Private Mortgage Insurance (PMI). PMI generally costs about 1/3700th to 1/1500th the price of the home. (On a $120,000 home, you'll pay $32 to $80/mo. for PMI).
Using this formula to pay off a loan early. You can use this formula to figure out how much you have to pay in order to pay your loan off early. For example, let's say you're five years into a 30-year mortgage, and you want to pay the loan off in another 13 years instead of another 25. Just enter in the principal remaining on your loan (should be listed in your coupon book or on your mortgage statement), and use 156 for the number of months (13 years x 12 months/year).
=PMT(8%/12,156,80000)
Here's how to figure your mortgage payment on a given loan amount. Open up your trusty spreadsheet software (Excel, ClarisWorks, etc.), and type in the following: =PMT(A%/12,B,C) Instead of typing the letters A, B, and C, use these figures instead: A = Enter the interest rate of the loan. Note that the formula divides it by 12 because you want the monthly interest rate, not the yearly interest rate.) Note that the result is a negative number. Don't worry about that. If it bothers you, put a minus sign between the = sign and "PMT".Here's an example. Let's say our home costs $140,000. We're putting 5% down ($7,000), so we'll only need to borrow $133,000. But we're rolling the closing costs ($6,000) into the mortgage, which takes it back up to $139,000. Our interest rate is 8% and it's a 30-year loan. So we've got: |
