You have decided to purchase a home and want to see the breakdown of the payments. Amortizing a loan is separating the principal and interest and seeing the loan balance at any given time during the loan. Read on to learn how to amortize a mortgage.
Things You'll Need
- Loan amount
- Interest rate
Know the amount you will be borrowing (principal). This is not the amount of the home's purchase amount, but the amount after your down payment has been deducted from it.
Call your loan officer for the interest rate on your loan. If you have not gotten that far in the process yet, call your bank for current interest rates. This will give you a rough estimate of what your interest may be in your calculation.
Determine the length of the loan. For example, you will be making 360 monthly payments on a 30-year mortgage.
Go online to the Mortgage Calc website and select "Amortization Calculations" then "Simple Amortization Calculator." Enter the loan amount, interest (must be a fixed interest rate) and the length of the loan. Select "Calculate" and see the breakdown of your loan by monthly payment amount.
Tips & Warnings
- Call your mortgage broker for an exact amortization schedule of your mortgage loan.