The mortgage amortization calculator determines payments (monthly or other) based on a particular principal amount, length of loan, and interest rate. It also creates an amortized payment schedule for a specified term.
The amortization schedule displays in column format. The columns include: Pmt (payment number), Date (date of payment), Interest (portion of payment that is interest), Principal (portion of payment that is principal) and Remaining Principal. The total amount of principal and interest paid-to-date appears at the end of the schedule for the specified term.
As you click (or Tab) from one field to the next, the system performs calculations displayed below in bold italic. When your entries are complete, click Calculate Amortization to display the payment amount and amortization schedule.
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Prepared For: |
Client's name |
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Principal: |
Dollar amount being borrowed (numbers and decimal point only) |
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Interest Rate (%): |
Interest rate of mortgage as a percentage (e.g., 7.85) |
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Amortization: |
The life of the loan in years (should auto recalculate if accelerated or if anniversary amount). Defaults to 25 years. |
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Start Date: |
Date on which the loan begins. Defaults to today's date. Use mm/dd/yyyy format. |
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Term: |
How long before the loan must be re-negotiated with the Lending Organization. Defaults to 5 years. To select a term other than 5 years, enter the desired number, then select (from the drop-down list) whether the specified period is in months or years. |
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Payment Method: |
Payment frequency. Select from drop-down list: 'weekly', 'bi-weekly', 'monthly', 'semi-monthly', 'quarterly', or 'annually'. Defaults to 'monthly'. NOTE: if you select a weekly or bi-weekly payment method, you must also decide whether or not you want the payments to accelerate the paydown of the mortgage. If you choose Yes, the amortization period is automatically reduced when the payment schedule displays. |
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Accelerated? |
Yes or No. If weekly or bi-weekly payments are to accelerate mortgage paydown, select Yes. In this case, the amortization period is automatically reduced when the payment schedule displays. |
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Anniversary Amount: |
Optional. If entered, borrower expects to pay this amount, in excess of the regular payment, on each anniversary of the loan. This accelerates payments toward principal, resulting in a loan paid down faster. Enter a lump sum or a percentage of the principal. Select 'Dollars' or 'Percent' from the drop-down list, as appropriate. |
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Force Custom Payment Amount check box |
Select this check box if you want to calculate the amortization with a specific payment amount. |
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Payment Amount: |
Monthly (or other) payment. System-calculated unless you select 'Force Custom Payment Amount', in order to enter a specific payment amount. |
To Prepare a Mortgage Amortization
Select the Financial tab at the top of any TMLS page.
At Financial Tools, click Mortgage Amortization.
Enter data as appropriate.
Click Calculate Amortization. At Payment Amount, view the system-calculated amount. NOTE: if you selected 'Force Custom Payment Amount', then you determined Payment Amount yourself.
Scroll to view the amortization table.
To print the schedule, click Print View, then select Print from the browser's File menu.
You can print documents without extraneous reference information at the top (header) and the bottom (footer) of each page. (See Special Printing Format.)
Some fields show pre-filled (default) responses. These can be changed as desired.
To test "what-if" scenarios, click Clear, then enter new values as desired.
What-if scenarios might explore the effect of higher or lower mortgage amounts, of different interest rates, of shorter or longer loan duration, or of accelerated payments.
You might also explore the effect on the mortgage paydown using a custom payment amount (select 'Force Custom Payment Amount').
