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Mortgage Repayment Calculator

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Understanding Your Mortgage Repayments

A mortgage repayment is the amount of money you pay each month to a lender to satisfy the terms of a home loan. This payment consists of two primary components: Principal (the actual amount borrowed) and Interest (the cost of borrowing the money).

How Mortgage Interest is Calculated

Most fixed-rate mortgages use an amortization schedule. This means that in the early years of your loan, a larger portion of your monthly payment goes toward interest. As the balance decreases over time, more of your payment goes toward the principal.

Key Factors Influencing Your Payment:

  • Loan Amount: The total sum you are borrowing from the bank.
  • Interest Rate: Usually determined by market conditions and your credit score. Even a 0.5% difference can cost or save you tens of thousands of dollars.
  • Loan Term: The length of time you have to repay. A 15-year term has higher monthly payments but significantly lower total interest than a 30-year term.

Calculation Example

If you take out a $300,000 loan at a 6.0% interest rate for 30 years:

  • Monthly Payment: $1,798.65
  • Total Number of Payments: 360
  • Total Interest Paid: $347,514.57
  • Total Amount Repaid: $647,514.57

Pro Tip: Making just one extra payment per year can shave years off your loan term and save you a massive amount in interest charges over the life of the loan.

function calculateMortgage() { var principal = parseFloat(document.getElementById('loanAmount').value); var annualInterest = parseFloat(document.getElementById('interestRate').value); var years = parseFloat(document.getElementById('loanTerm').value); if (isNaN(principal) || isNaN(annualInterest) || isNaN(years) || principal <= 0 || annualInterest <= 0 || years <= 0) { alert("Please enter valid positive numbers for all fields."); return; } var monthlyInterest = annualInterest / 100 / 12; var numberOfPayments = years * 12; // Formula: M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1] var x = Math.pow(1 + monthlyInterest, numberOfPayments); var monthlyPayment = (principal * x * monthlyInterest) / (x – 1); var totalPayment = monthlyPayment * numberOfPayments; var totalInterest = totalPayment – principal; document.getElementById('resMonthly').innerHTML = '$' + monthlyPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resInterest').innerHTML = '$' + totalInterest.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resTotal').innerHTML = '$' + totalPayment.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('mortgage-results').style.display = 'block'; }

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