To calculate the monthly payment on a mortgage loan use the formula:
c = Monthly Payment
r = Monthly Interest Rate (in Decimal Form) =
(Yearly Interest Rate/100) / 12
P = Principal Amount on the Loan
N = Total # of Months for the loan ( Years on the loan x 12)
Example: Monthly mortgage payment for 30 year fixed-rate loan,
with a principal of $250,000, and a yearly interest rate of 6.5%:
r = (6.5 / 100) / 12 = .005416667
P = 250,000
N = (30 x 12) = 360
The Monthly Mortgage Payment is $1580.17
Mortgages are loans secured by real property by a mortgage note. The word mortgage alone, in most everyday usage, is often used to mean mortgage loan. The word mortgage is a term from French Law that translates as "death contract", meaning that the pledge is finished (dies) when either the obligation is fulfilled or the property is reposessed through foreclosure. A home builder, or buyer, can obtain mortgage financing (a loan) either to purchase or secure against the property from a bank, or other financial institutions either directly or indirectly through brokers or intermediaries. Some features of mortgage loans include the size of the loan, maturity of the loan, interest rate, payment method, and other characteristics. These characteristics can vary considerably between institutions.
For more help with this subject, try this mortgage calculator.