How To Use Mental Mortgage Math

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, increasing 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 us to do the rest.