The calculator is for informational purposes only and is not intended to provide legal or financial advice, or to reflect the actual terms and conditions of a loan. In no event shall we be liable for any direct, indirect, incidental, special, or consequential damages arising out of or in connection with your use of the calculator. Please note that financing may not be available for all scenarios. The advice of a professional should be consulted when buying a home or financing a mortgage loan.
Amortization Calculator Results Explained:
Once you enter all the necessary information into the amortization calculator, it will yield several results such as the monthly payment, total remaining balance, total principal and total interest paid.
To determine these results, the calculator uses these numbers:
1. Loan amount: The loan amount is the principal balance of your mortgage that you owe to the lender, not including interest.
2. Interest rate: This is a percentage of the loan amount borrowers must pay in addition to the cost of the mortgage.
3. Loan term: The loan term is the amount of time it will take to pay back the mortgage.
The monthly payment for your mortgage will initially cover the interest, and then slowly subtract the money you owe on your home loan over time. However, it’s important to note that this doesn’t include other home expenses such as insurance, property taxes or utilities.
The total remaining balance is how much you still owe in order to pay off your home, while the total principal paid is the amount you borrowed. The total interest paid is determined by your interest rate and how much this stacks up every month.