What is the formula for interest if payments change?

2 Responses to “What is the formula for interest if payments change?”

1. what says:

   December 2, 2010 at 1:14 am

   I really like this calculator, and like to fool around with different scenarios. It beats the formulas and does the work for you. Just plug in the mortgage information as you were on day one on the mortgage. Then you can find out where your are now on the monthly amortization schedule, and say it says you are at the 65 month, now you can enter what ever amount you want and enter monthly and the 65 month, it will calculate when your mortgage will be paid off, and the savings you will realize.

   http://www.dinkytown.net/java/CAMortgageLoan.html
2. STEVEN F says:

   December 2, 2010 at 1:56 am

   Interest is calculated EXACTLY the same in ALL cases. Multiply the monthly rate by the balance at the beginning of the month. That amont is interest, the reminder of the payment applies to principle. The balance is reduced by the amount applied to principle.

   You can also download Excel templates for loan calculators that will do all the math for you.

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