Mortgage Calculator

Mortgage Calculator is a simple formula. It can be easily done in Excel.Mortgage is  either building up equity or paying off debt.
Although the payments are all equal, equity doesn't build up at a constant rate: that's because at the beginning the debt is still high, so most of the payments are paying interest; toward the end, the remaining debt is small so very little of the Mortgage payment goes toward interest.
If "a" is the annual payment amount, P is the initial loan amount and  r is the loan interest rate.
After 1st year Debt will be Debt(1) = P(1+r)-a
After 2nd Year Debt will be Debt(2) = [ P(1+r)-a] (1+r) -a


Debt (n) =  Debt(n) = Pzⁿ - a[(zⁿ - 1)/(z - 1)];
where z =1+r

Monthly Payout a = [P(1 + r)ⁿr]/[(1 + r)ⁿ - 1]

P= $100,000

r=.07/12= .00583

n = 30*12=360

Payment =[$100,000(1 + .00583)³⁶⁰ x .00583] / [(1 + .00583)³⁶⁰ - 1]

Guidelines for Mortgage Buyers

Don't build yourself a mortgage mountain. It's fine to want the best home you can afford, but be certain that it is comfortably affordable. Your monthly mortgage payment should not be more than 25% of your take home salary.

Get your budget under control. Reduce your expenses, save more and plan to repay the loan in six years.

Begin to gather documentation. It is not necessary that you have all items on hand before you apply, but there are a number of documents you will need eventually and the approval process will go much smoother if you begin to gather them now.

Don't forget about closing costs. In addition to your down payment, you will need to reserve funds for closing costs. Depending on the type of loan and your location, these costs can range from 2-5% of the mortgage amount, will be paid in cash at the closing and cannot be borrowed funds.

There are lots of sources for mortgage funds--be sure to make comparisons. Be certain to compare equal terms, down payments, Pre payment facility  and loan types.

Your total mortgage cost will be determined by 3 factors: The interest rate, the term and the amount of points. >
Get educated! Securing a mortgage is not all that complicated, but if you approach it blind, mistakes can be expensive!

Consider a 15 or 20 year term. Many home buyers make the assumption that a shorter term will boost their payments out of reach. Unless you make the comparison, though, you may never know if a 15 or 20 year (if available) term could have been affordable.

Comparison of Mortgage

Lender B offers 6.25 percent with the borrower paying a total of $7,000 in points and fees.

Lender B offers a lower interest rate (or "nominal rate"), but for $2,000 more in points and fees.

Which is a better deal? Lender A's offer has an APR of 6.83 percent, while Lender B's offer has an APR of 6.71 percent. Since Lender B's APR is lower, that loan is a better deal for the entire duration.

If you want to repay the loan with 60 months, loan A is better choice...

You can avail Mortgage Loan for purchasing a new home, improvement of your home or even for premises used for commercial purposes.
Some bank also offers Mortgae loan to student also. With this loan, students can "invest" the amount otherwise spent on rent in the purchase of residence.

For more information on Mortgage,search in google