After some research on mortgage and talked to my real estate loan agent, I figured a quick and easy way to calculate home mortgage monthly payment "on the fly".
Assuming you are buying a 800K house, with 20% downpayment, your loan amount is 800K - 160K = 640K. With monthly interest rate of 6% approx, your monthly payment will be:
3200 + 640 + 800 = 4640 per month.
The first number (3200) is the approx. monthly interest payment. It comes from Loan amount divided by 100 then divided by 2. In this case, 640K divided by 100 = 6400 then divided by 2 = 3200
The second number (640) is the approx. monthly principle payment. Just divide the loan amount by 1000. In this case, 640K divided by 1000 = 640.
The third number is the approx. monthly property tax + home insurance. Just divide the house purchase price by 1000. In this case, 800K divided by 1000 = 800.
I am able to come up with the monthly mortgage in my mind within minutes when I was on my open house tour now which is very helpful and hopefully someone will benefit from this quick and easy mortgage calculation method.
Happy Holiday and good luck in your real estate investment!
Tuesday, December 16, 2008
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