How to Compute Mortgage Interest

If you are considering taking a home mortgage loan, or you already have one, you will probably want to compute the mortgage interest to determine how much interest you will be paying on your mortgage over the life of the loan. The best way to compute mortgage interest is using a mortgage rate calculator. You can find mortgage calculators on the Internet available for use free of charge.

Instructions

1. Go to a website that offers a mortgage calculator. You can find one in the resources section of this article.

2. Place your cursor in the first field and enter the dollar amount of the mortgage.

3. Tab to the next field and put in the term of the mortgage. This is the number of years that you plan to be paying on your mortgage loan. Most mortgages are either twenty or thirty year terms.

4. Put in the interest rate of your current mortgage or the rate that you expect to be offered on your mortgage loan.

5. Determine the start date of the mortgage loan. If you do not know when you will be starting your loan, estimate a date for the sake of computing.

6. Enter the amount of the monthly mortgage payment.

7. Click on the Calculate or Submit button to compute the amount of interest that you will pay over the life of your mortgage loan.

Tips & Warnings

• Some mortgage calculators also provide fields to factor in extra payments. This type of calculator will compute how much money you can save on interest if you pay a little extra on the mortgage loan each month.