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Frequently Asked Questions

What is the formula to calculate monthly loan payment?

Quick Answer. The formula for calculating a monthly mortgage payment on a fixed-rate loan is: P = L[c(1 + c)^n]/[(1 + c)^n - 1]. The formula can be used to help potential home owners determine how much of a monthly payment towards a home they can afford.

How do you calculate the monthly payment on a loan?

To calculate the monthly payment on an interest only loan, simply multiply the loan balance times the monthly interest rate. The monthly interest rate is the annual interest rate divided by twelve.


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