How to calculate fixed interest rate mortgage?

To calculate a fixed interest rate mortgage, you will need to know the loan amount, the loan term (length of time to repay the loan), and the fixed interest rate. Use the following formula:

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

M = monthly mortgage payment
P = the principal loan amount
i = the fixed interest rate (decimal form)
n = the number of payments (loan term x 12)

For example, if you have a $300,000 loan amount, a 30-year term, and a fixed interest rate of 3.5%, your monthly mortgage payment would be:

M = 300,000 [ .035(1 + .035)^360 ] / [ (1 + .035)^360 – 1]

M = $1,342.05

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