Linda asks…

## How are monthly mortgage payments calculated?

I ask because i have just used a **mortgage** **calculator** online and they have worked out this:

To borrow £100,000.00 over a term of 15 years at a monthly calculated interest rate of 4.89% gives:

Repayment **Mortgage** Monthly Repayment £785.08

and

Interest Only Monthly Repayment £407.50

Thanks for any help.

### admin answers:

You will probably be not too surprised to learn, that in that feather-bedded, backward industry called banking, they are using different formulas to calculate the same things and percentages mean different things to different people.

I have put in 3 equations in my calculator and usually one of them agrees with the figures quoted by lenders.

The chaos is due to the fact that in the days before the introduction of electronic calculators, it was only practical to use approximate formulas which were easier to calculate. Some banks still use them while others have changed to the mathematically correct formulas.

The incorrect formulas survive because the Americans (who as you know are the most backward people on Earth, except in war machines) use them. Also Excel. As you know the Americans still use bushels and gallons and barrels etc.

(I suppose I had better get ready now for a flood of insults from the country of free speech, if it is not an oxymoron)

Susan asks…

## Mortgage Calculator Help?

I am trying to find a **mortgage** **calculator** that will let me input the payment amounts (so I can play with some payment options).

All of the calculators I have found so far calculate the payments for you. I would like to find one that allows me to input the rate, principal, and bi-weekly/monthly payment amount to determine the amortization period required to pay it off.

Any suggestions?

### admin answers:

You can type how to calculate money into yahoo and pick out the right formula and plug in the numbers and solve for periods!!!

Jenny asks…

## How much money would I save, paying cash as opposed to mortgage?

$90.000.00 at 6.25% fixed rate for 30 years (not including taxes, fees, etc.)

I went to an online **mortgage** **calculator** and keep coming up with over 100K savings! Is this correct?

I do have the cash and signed the papers. People think I am nuts for paying cash, but I look at them thinking who is the real nut.

I am not worried about write-offs or investing the money. I have to live somewhere instead of an apartment. Most importantly, I want my kids (while they are young) have a place to call home, friends and memories.

If needed, I can get a **mortgage** and buy another house and rent it as apartments and break even for the next 30 year.

### admin answers:

You’re going to save about $110,000 over the course of the loan. Just make sure you look at other options before you take 90K out of your pocket, in case there’s a better opportunity somewhere.

Charles asks…

## is there a calculator to figure out my mortgage balance if I increase the payments?

I am near the latter part of my **mortgage**……I want to increase the payments from the minimum of 980 to 1300 per month..How soon will it be paid off. There is a balance remaining of 25,000 and the interest rate is 7.5%

### admin answers:

I know there are tables to express your exact amounts and time frame – but if you don’t do the “mortgage acceleration” process correctly, it will backfire on you. Here’s what will happen if you send a check to your mortgage company for 1300 (instead of 980) the excess will be applied to NEXT months INTEREST payment, and not to the Principal – The correct way to accelerate your mortgage so that it gets paid off quicker, and you get more equity into your home – Draw two checks – one for the reg. 980 and the other for the 320.00 – on the smaller check you write in the Memo line – TO BE APPLIED TO PRINCIPAL ONLY! – so that the bank has reduce the amount you owe. Do not worry, the bank will do the right thing, as they have been sued for not handling the funds (FEDERAL BANKING LAWS) correctly. Good Luck! — I did this myself and took

3 years off my payments.

Thomas asks…

## How can I add real estate tools to my website?

I am building a website for my husbands business. www.tobarhomeloanservicesinc.com It’s a real estate site so I wanna have cool tools on it like a **mortgage** **calculator**, a tool to search for properties currently on the market, a tool to check property comps for clients to know the value of their property, a tool Check **Rates** both wholesale and retail, etc. I have found a couple of websites that offer the **mortgage** **calculator** and **rates** but they link the viewer to their website which obviously I don’t want. Don’t mind paying a reasonable price just dont know where to start. HELP

### admin answers:

Try this tool. I hope this helps,

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