North Carolina Mortgage Calculator

Whether you are a math nerd who aspires to do the math by hand or simply want to understand how North Carolina mortgage payments are calculated, the formula looks like this:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

Key:

• M = monthly mortgage payment
• P = principal amount
• I = monthly interest rate (usually listed as an annual percentage rate)
• N = number of payments over the life of the loan (360 payments for 30 years, etc)

In North Carolina if you are obtaining a fixed mortgage, whether it be 30, 15, or even 5 years, you are probably curious to see how much you are paying in interest.  One thing to remember is that in the U.S., interest is paid in arrears. So, your monthly payment includes interest for the 30 days BEFORE your due date. Since fixed mortgages are fully amortized installment loans, the amortization schedule shows how the split between principal and interest changes over time. In the early years of the mortgage term, most of your payment will go towards interest. However, as you pay down the principal, less interest will accrue and more of your payment is applied to the principal.

In North Carolina the longer you finance your home for, the lower your monthly payments will be. Conversely, a shorter (or adjustable rate) term usually equates to a lower interest rate. Its important to run the numbers on multiple scenarios to find out what works best for you.

If you already have a mortgage and are looking for an opportunity to lower your current monthly payments, consider the following:

• Refinance at a lower rate
• Refinance to a longer term
• Eliminate mortgage insurance
• Apply for mortgage forbearance or loan modification (in case of financial hardship)

In North Carolina an Amortization Schedule calculator provides a schedule of how much is paid for each portion of the mortgage payment over time. A mortgage calculator allows you to plug in the mortgage amount, term (number of payments) and the APR (interest rate per year) and determine the total you will pay in principal and interest over the life of the loan.