First Mortgage Repayment Calculator

Mortgage Repayment Formula:

\[ M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

First Monthly Payment (M):

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1. What is a Mortgage Repayment?

The first mortgage repayment is the initial monthly payment on a home loan, calculated based on the loan amount, interest rate, and loan term. This payment typically remains constant for fixed-rate mortgages.

2. How Does the Calculator Work?

The calculator uses the standard mortgage payment formula:

\[ M = P \times \frac{r(1 + r)^n}{(1 + r)^n - 1} \]

Where:

\( M \) — Monthly mortgage payment
\( P \) — Principal loan amount
\( r \) — Monthly interest rate (annual rate ÷ 12)
\( n \) — Number of payments (loan term in years × 12)

Explanation: The formula calculates the fixed monthly payment required to fully amortize the loan over its term.

3. Importance of First Payment Calculation

Details: Knowing your first payment amount helps with budgeting and financial planning when taking out a mortgage. It establishes your baseline housing cost.

4. Using the Calculator

Tips: Enter the total loan amount (after down payment), annual interest rate, and loan term in years. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Does this include taxes and insurance?
A: No, this calculates only principal and interest. Your actual payment may include escrow for property taxes and insurance.

Q2: Why is my first payment slightly different?
A: First payments often differ due to interest accrual between closing date and first payment date.

Q3: How does loan term affect payment?
A: Shorter terms mean higher monthly payments but less total interest paid over the life of the loan.

Q4: What about adjustable-rate mortgages?
A: This calculator assumes a fixed rate. ARM payments will change when the rate adjusts.

Q5: How accurate is this calculator?
A: It provides a close estimate, but your actual payment may vary slightly based on lender's specific calculation methods.