It’s not as difficult as you think! Let’s use a 6% interest rate as an example:
Payments: The payment for principal and interest equals about $600 on a $100,000 30-year loan. Use this as your benchmark. (Actual is $599.55).
Principal Paid: At this rate, figure 1/10th of 1% of the loan amount each month. Example $100,000 loan = $100 of principal paid. (Actual figure starts at $102.33, increasingly with each payment).
Interest Paid: Subtract the principal from the payment to determine the approximate cost of interest. Example $600 payment – $100 principal = $500 interest.
As rates change all the time, call for an update on current levels, and we’ll calculate a current benchmark applicable to today’s markets.
Mental Mortgage Math is not meant to replace your calculator, but is a great way to estimate numbers quickly on the fly. Call when you want one of our ProVis0rs to do the rest.