By periodically referring to a mortgage amortization calculator, you can check the estimated balance due on your loan against the market value of the property. Amortization calculators usually only consider your principal and interest and not the escrow for property taxes and insurance premiums normally included in a mortgage payment.
Here is an easy-to-use calculator to obtain a mortgage amortization based on the loan amount, interest rate, and years of the loan.
Using the Calculator
This Simple Interest and Amortization Calculator requires inputting basic information to obtain your amortization information. All of the information below can be found on the HUD forms for your loan.
Here, provide the total amount of principle that you originally took out for the loan. Do not worry about how much you have paid off to date; instead, provide the total amount of principle that you borrowed.
In this area, input the interest rate applicable to your loan in whole numbers. For example, if your interest rate is 3.75%, input "3.75". Provide the basic interest rate, not any rate that may be in effect in the future due to an adjustable rate on your loan going into force.
Here, enter the length of your loan. Many mortgage loans last for a term of 30 years.
In this section, insert the date that you first paid your mortgage. This refers to the date that you provided your first payment, which usually occurs during closing; you may have included your first month's payment in your closing costs.
Here, provide the year that you assumed the loan. This information is used to calculate the total length of time that you have paid on the loan.
Amortization Calculation Basics and ARMs
An amortization calculator works best when investigating a fixed-rate mortgage because adjustable rate mortgages (ARMs) are subject to fluctuating interest rates. If the terms of your mortgage identifies interest rate caps or states how often the lender can adjust your interest rate, you can still use the calculator to get a short-term look at how your mortgage payment will be allocated.
See the Big Picture
A mortgage amortization calculator can show you the big picture of your mortgage as broken down in understandable chunks. This can help you manage your finances and decide the best way to handle your housing debt.