How to Calculate the Amount of Interest payed on a Mortgage

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Using the above calculator will allow you to find out how much interest you are paying on the total lifespan of the mortgage. The average individual will end up paying $100 000+ in interest on their mortgage. You can decrease the amount of interest paid by

  1. Upping your weekly, monthly or bi-weekly payments
  2. Changing your monthly payments to weekly or bi-weekly payments
  3. Adding a lump sum every year
  4. Lowering your interest rate
  5. Lowering the length of your mortgage

Please note that it might take a combination of the changes above to lower you interest to that less than $100 000 mark.

Step 1

Insert the loan amount - When adding the cost of the loan make sure you’ve taken off the value of the down payment from the loan amount since there isn’t a field for down payment on the calculator. Also make sure there are no spaces when inserting the amount (200000 instead of 200 000) because the calculator will only take the digits before the space.

Step 2

Insert the Interest Rate - Simply insert the interest rate of the loan. If you play around with the interest rate, you can see how much it can affect the overall amount you pay over the length of the loan.

Step 3

Insert the Length of the Mortgage/Loan - Simply insert the length of your mortgage in years. Once again if you play around with the numbers, you’ll see how much the length of the mortgage will affect amount of interest on your mortgage.

Step 4

Compute the Calculation to your Mortgage Info - After you’ve inserted all your info, click on the compute button and your info will appear. The calculator displays your monthly payments, your total payment and the total interest paid on the home. It is shocking to see how much we pay on property.

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One Response to “How to Calculate the Amount of Interest payed on a Mortgage”

  1. mortgage » Blog Archive » How to Calculate the Amount of Interest payed on a Mortgage on April 27th, 2008 8:50 am

    [...] home loans, mortgages wrote an interesting post today onHere’s a quick excerptrefinance calculator Using the above calculator will allow you to find out how much interest you are paying on the total lifespan of the mortgage. The average individual will end up paying $100 000+ in interest on their mortgage. … [...]

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