Determining your mortgage loan principal – money you still owe to the bank for your house, can be very beneficial, particularly if you are looking to pay your mortgage off ahead of time. In order to figure out your remaining balance, you only need to know the loan amount, the interest rate on your loan, the length of your loan, and how many months you have already paid. Together, all of these factors will help you figure out the amount of principal you still owe.
As an example, pretend your total loan was for $25 with a 3.250% interest rate. The original loan was for 30 years, but you have already paid on the loan for 60 months. After paying on your loan for 60 months, you will have paid $38, in interest and only $26, toward the principal. If you subtract the $26, you have paid toward the principal from the original loan amount, this leaves you with $223, in principal left to be paid.
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By default $312,500 15-yr fixed-rate refinance loans are displayed in the table below. Filters enable you to change the loan amount, duration, or loan type.
See What Goes Towards Your Principal
When you buy your first home, you may get a shock when you take a look at your first mortgage statement: You’ll hardly make a dent in your principle as the majority of your payment will apply toward interest. Even though you may be paying over $1,000 a month toward your mortgage, only $100-$200 may be going toward paying down your principal balance.
- Amount of the loan
- Interest rate
- Length of the loan
- How many months you have already paid in to the loan
The reason that the majority of your early payments consist of interest is that for each payment, you are paying out interest on the principle balance that you still owe. Therefore, at the beginning of your loan, you may owe a couple hundred thousand dollars and will still have a hefty interest charge. With each payment, you will reduce the principle balance and, therefore, the amount of interest you have to pay. However, since your loan is structured for equal payments, that means that you’re just shifting the ratio, not actually paying less each month. With each successive payment, you are putting in a little more toward principle and a little less toward interest. By the end of your loan term, the majority of each payment will be going toward principle.
If you pay extra on your loan early into the term it means the associated debt is extinguished forever, which means a greater share of your future payments will apply toward principal. We offer the web’s most advanced extra mortgage payment calculator if you would like to track how one-off or recurring extra payments will impact your loan.
Mortgage Interest Formula
- P = the payment
- L = the loan value
- c = the period interest rate, which consits of dividing the ple, a loan with a 3% APR charges 0.03 per year or (dividing that by 12) 0.0025 per month.
- n = the total number of payments in the life of the loan (for monthly loan payments this is the loan term in years times twelve)
You can use this formula to determine your payment at any time. Then subtract it from your actual mortgage payment to determine the principle that you are paying each month.
Of course, this formula is quite complicated, and it isn’t necessary to use it at all. There are two other ways to understand your principle payment each month.
The first is to look at your bill. If you are receiving a monthly statement for your mortgage, it should include a breakdown of your payment, including how much goes to principle, how much goes to interest and how much goes to variables such as property taxes, private mortgage insurance and homeowner’s insurance.
The second is to use a calculator like the one offered here. It allows you to enter the amount of the loan, the current interest rate, the length of the loan and the number of months you have already paid in the loan. It will then provide you quick and accurate results so you can get a clear picture of your principle payments each month. The results are e-mailed directly to you within moments, and you don’t have to enter any personal information to get your results. Use it regularly to find out exactly where you stand with your mortgage.
The above calculator on this page allows you to create a printable PDF which you can email to yourself. You can also enter a future payment date to see where your loan will be at the end of next year. If you make irregular or extra payments you may want to use either our extra mortgage payment calculator or download our Excel mortgage calculator.
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