How to Figure Out Your Monthly Mortgage Interest

No matter what type of mortgage loan you have, it is possible for you to figure out how much mortgage interest you are supposed to pay each month. Knowing how much interest and principal you should pay each month will help you establish your own payment records and avoid any mistakes by your mortgage services. Here is the basics as to how to calculate the interest you owe.

Difficulty: Moderately Easy

Instructions

1. Find out your current yearly mortgage interest rate. Even if you have an adjustable mortgage rate, you should know your mortgage rate at any given moment.

2. Find out how much principal you owe. This is the total amount of debt you need to pay off.

3. The basic formula for a monthly mortgage interest calculation is to multiply your principal amount by the yearly interest rate divided by 12. For example, if you owe $300,000 and you have a yearly interest rate of 5%, then your interest for this month is 300000* 0.05/12, or $1250.

4. Each month you should check your mortgage statement to see that the principal and interest amounts are correct because some mortgage servicers can be very dishonest.

Resources

• Countrywide tried to steal my parents' money - How you can avoid being a victim of mortgage servicing fraud