Mortgage Math Made Easy
Many years ago I acquired this table that makes easy work of figuring out your monthly payment on a home purchase without the need of a financial calculator. Professionals in the real estate business need a financial calculator, but the average homeowner or first time home buyer can get by quite nicely with this table. I have randomly compared this table against my financial calculator and they come within less than a dollar of each other. This table can help a person decide if they can afford a house and offers a comparison of the dramatic difference a change in interest rate can have on your monthly payment. I have added the examples below the table to help with clarity.
Bonus real estate math: Real estate usually appreciates in value, but it can also depreciate in value. Here is the math and how it generally affects the value of your property.
Appreciation: Suppose the annual appreciation of property in your area was 5% a year over the last 3 years and your house was purchased for $250,000.00
$250,000. X 1.05 x 1.05 x 1.05 = $289,406.25 is the present value
Depreciation: Home values in your area have depreciated 4% per year for the last 2 years and your house was purchased for $250,000.00
$250,000.00 x .96 x .96 = $230,400.00 is the present value
These simple comparisons can help you see the dramatic affect interest rates can have on your financial decisions.
Wayne B. Pruner is a Realtor® at Oregon First, who works in the Portland and Tigard, Oregon area. He is ready to help you with all your real estate needs. His phone number is 503-891-0795. Here are links to his real estate website and his real estate blog.
Monthly Mortgage Payments
Principle and Interest
|
Interest
Rate %
|
5
|
10
|
15
|
20
|
25
|
30
|
|
4.00
|
18.42
|
10.12
|
7.40
|
6.06
|
5.28
|
4.77
|
|
4.25
|
18.53
|
10.24
|
7.52
|
6.19
|
5.42
|
4.92
|
|
4.50
|
18.64
|
10.36
|
7.65
|
6.33
|
5.56
|
5.07
|
|
4.75
|
18.16
|
10.48
|
7.78
|
6.46
|
5.70
|
5.22
|
|
5.00
|
18.87
|
10.61
|
7.91
|
6.60
|
5.85
|
5.37
|
|
5.25
|
18.99
|
10.73
|
8.04
|
6.74
|
5.99
|
5.52
|
|
5.50
|
19.10
|
10.85
|
8.17
|
6.88
|
6.14
|
5.68
|
|
5.75
|
19.22
|
10.98
|
8.30
|
7.02
|
6.29
|
5.84
|
|
6.00
|
19.33
|
11.10
|
8.44
|
7.16
|
6.44
|
6.00
|
|
6.25
|
19.45
|
11.23
|
8.57
|
7.31
|
6.60
|
6.16
|
|
6.50
|
19.57
|
11.35
|
8.71
|
7.46
|
6.75
|
6.32
|
|
6.75
|
19.68
|
11.48
|
8.85
|
7.60
|
6.91
|
6.49
|
|
7.00
|
19.80
|
11.61
|
8.99
|
7.75
|
7.07
|
6.65
|
|
7.25
|
19.92
|
11.74
|
9.13
|
7.90
|
7.23
|
6.82
|
|
7.50
|
20.04
|
11.87
|
9.27
|
8.06
|
7.39
|
6.99
|
|
7.75
|
20.16
|
12.00
|
9.41
|
8.21
|
7.55
|
7.16
|
|
8.00
|
20.28
|
12.12
|
9.56
|
8.36
|
7.72
|
7.34
|
|
8.28
|
20.40
|
12.27
|
9.70
|
8.52
|
7.88
|
7.51
|
|
8.50
|
20.52
|
12.40
|
9.85
|
8.68
|
8.06
|
7.69
|
|
8.75
|
20.64
|
12.54
|
10.00
|
8.84
|
8.23
|
7.87
|
|
9.00
|
20.76
|
12.67
|
10.15
|
9.00
|
8.40
|
8.05
|
|
9.25
|
20.88
|
12.81
|
10.30
|
9.16
|
8.57
|
8.23
|
|
9.50
|
21.01
|
12.94
|
10.45
|
9.33
|
8.74
|
8.41
|
|
9.75
|
21.13
|
13.03
|
10.60
|
9.49
|
8.92
|
8.60
|
|
10.00
|
21.25
|
13.22
|
10.75
|
9.66
|
9.09
|
8.78
|
Payment = (multiplier) x (# of thousands)
Example: payment on a $150,000 loan for 30 years at 7.25% is
(150 x 6.82 = $1023.00 per month)
To breakdown the payment to principle and interest the first month:
$150,000 x 7.25% = $10,875. ÷ 12 = $905.25 monthly interest
$1023.00 - $905.25 = $117.75 monthly principle
Wayne B. Pruner, Realtor®, GRI 503-891-0795
Oregon First
waynepruner@oregonfirst.com
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I have the Monthly Mortgage Payment table in Word format. I would be happy to share it with anyone and it can be customly edited to fit your purposes. (It looks better in the Word format.) Send me an email if you want it.