Mortgage Amortization Calculator: Maximize Your Rental Investment
By purchasing your mortgage investment property, you as an investor will be forced to pay monthly mortgage payments. Before making a purchase, it is important to know how much interest you could end up paying on the mortgage. It will also be useful to compare different loan options before buying. If you have already bought your property on a mortgage, you will need to know how much of the debt has already been repaid, and what is left that you’ll have to pay.
Our mortgage amortization calculator will allow you to quickly understand the structure of your mortgage payments, as well as which part of your payments will go to cover the principal amount of the mortgage. By changing the loan amount, interest rate, number of years, number of payments per year, you will be able to compare different options for your monthly payment and choose the best one for you.
This calculator is useful for long-term fixed-rate mortgages and fixed expiration dates.
The mortgage calculator amortization table will help you define :
- the amount of monthly mortgage payments, which are directed to the principal amount and interest
- the total amount of principal and interest paid for the duration of the mortgage. This will allow you to compare different loan terms or payment plans before making a purchase
- the amount of outstanding debt remaining at a certain date. This will make you realize how much more you owe for your property
- comparison of conditions between mortgages taken for different terms
How to estimate mortgage payment
When you amortize a loan, you repay it gradually by paying interest on it, as well as the principal amount of the debt. Each monthly mortgage payment will be the same, but the amount of interest will decrease on a monthly basis, while the amount of principal will increase each month. The easiest way to calculate mortgage payments is to use our free mortgage amortization calculator.
How to lower mortgage payments
- Select the longest mortgage term
- Select the cheapest property
- Make a larger down payment
- Find the lowest interest rate available to you
You will be able to pay smaller monthly mortgage payments by choosing a mortgage option for a longer period. This means extending the loan term. For example, a 5-year mortgage will have higher monthly mortgage payments than a 10-year mortgage because you pay off the loan in a shorter period of time.
Another possible way to pay lower monthly mortgage payments is to buy a lower value property. Obviously, the more expensive the property you buy, the higher your mortgage payments will be. At the same time you can make a larger down payment and thus also reduce subsequent monthly mortgage payments.
And the last thing that affects the amount of your monthly payments is the interest rate. You need to carefully weigh all the options available to you from creditors. Try to find a lower rate and keep your monthly mortgage payments as low as possible.