Mortgage Calculator: A Simple Tutorial (template included)!

💸 Who knew a 1.5% change in interest rates can result in an additional US$ 100,000 of interest payments?

In this video I go through a step-by-step tutorial on how to calculate your monthly mortgage payments given 3 things: the initial amount you borrowed, the interest rate you agreed to, and the loan repayment period

By playing around with the numbers, you will be able to clearly see how each factor affects the total interest you pay back the bank (or to whoever loaned you the principal)

TIMESTAMPS
00:00 How to Calculate Monthly Payments
00:33 Intro to Mortgage Calculator Template
00:58 Monthly Payment for Fixed-Rate Loan
02:33 Calculate Monthly Interest Payments
04:55 Double Check Your Calculations
05:49 How Interest Rate affects Total Interest
06:17 How Extra Payments affect Total Interest
07:05 Pro Tips for this Mortgage Calculator

RESOURCES I MENTION IN THE VIDEO

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👨🏻‍💻 WHO AM I:
I'm Jeff, a tech professional trying to figure life out. What I do end up figuring out, I share!

PS: Some of the links in this description are affiliate links I get a kickback from and my opinions are my own and may not reflect that of my employer 😇

#mortgage #adulting #amortization

[JeffSu]

Hands up if this video gave you even more adulting anxiety 🙋🏻

TIMESTAMPS
00:00 How to Calculate Monthly Payments
00:33 Intro to Mortgage Calculator Template
00:58 Monthly Payment for Fixed-Rate Loan
02:33 Calculate Monthly Interest Payments
04:55 Double Check Your Calculations
05:49 How Interest Rate affects Total Interest
06:17 How Extra Payments affect Total Interest
07:05 Pro Tips for this Mortgage Calculator

[mickfromsyd]

Jeff after my parents spending 30 minutes trying to explain it and me not getting it. I found your video and now teaching them 👏🏻 cheers mate

[nickbetzold]

Hey Jeff, I haven't read all the comments (someone probably already pointed this out) but you verbally added Total Interest to calculate Total Principal in the second row for Total Principal. But the formula you entered was correct. Great service you're providing to home buyers! As a retired investment banker who joined his wife as a Realtor, I used to use Excel all the time, but have had relatively little need over the last 20 years. I say this to say you are not only helping home buyers, you're also helping an old dog like me save the mental energy needed to figure out how I would lay this out for my potential clients. Hat tip to you, and just so you know, and I would be glad if you beat me to the punch, we need to create a spreadsheet that goes the next step and can compare the real economic consequences of the 3 different scenarios (payment options) the lender offers after our offer to the seller has been accepted, including different interest rate buy-downs. Peace, --N

[JS-drtw]

Great video! Trying to teach my young children how loans work before they're adults

[LuisjmGil]

Maaan you are make us more rich for free. Hope everybody can see that. Big hug and thank you so much.

[kevinh]

Thanks Jeff. Your video and format is excellent! Would love an adjustable rate calculator too please....

[nikhilgoyal]

thanks. Monthly interest is (1 + Ann rate) ^ (1/12) -1 . It is very close to the Ann rate / 12 but here it is causing your monthly payment to be $10 more than it needs to be :)

[itskristieali]

Amazing video, learned so much and learned more about excel on top of that. Thank you so much!!

[gracejones]

Jeff, this is awesome. Love it. Very easy to understand. One question, what if it's base on a variable rate instead of fixed? let's say 2 years in, rate increases and 3 years in, rate reduces. How to adjust accordingly?

[arabianseagull]

absolutely excellent Mr. Jeff Su. Thanks 🙏

[retsxleopard]

This is the video that solved it for me. Great stuff!

[gaureya]

I like the word you said " Automagically" calculated.👍😀

[denniskaluzhni]

Hey Jeff,
Great video as always!

Just quick note that when dividing the percent by 12 it's not very accurate - for better results add 1 (for 103.3%) and root the number of months (or add to the power of 1/12) and then subtract 1. I know it's a bit complicated at first, so maybe that's why you made it simpler :)

Keep up the great work!😁😁

[vvvinsanity]

Boosted my productivity level by 932% bro

[ShannonFranklin-dyik]

Thank you so much for this video. It was very instructive.

[mlgen]

This is just brilliant. I needed something like this. I would really like to vote for variable rates too... It has been 2 years now with fixed and recently had to fight with the bank to get a decent deal considering the inflation. So payments (rates) change from October.

[dwightavaloz]

Hi Jeff, thank you for this excellent video. I wanted to ask you if, when making extra payments, the monthly payment should decrease or if it always stays the same?

[Andrea_Dong]

Jeff entering the personal finance space I see 👀

Congrats on the apartment by the way! I love your interior! It looks very minimalistic :>

[dads_random_projects]

Great video. Download link for template doesn’t seem to be working. Not to worry tho you video was very clear and I have followed along to create my own version. Thank you! Now to work out the benefits overpaying will have for me 😅

[jasondhindsa]

Jeff, can you please do a video on how to create the same spreadsheet for a variable rate mortgage?