Monthly Mortgage Interest Calculation

tryingtogetbyJune 28, 2013

From my monthly mortgage statement, if I divide the interest rate by 12 months and multiply the result by the principal balance, should I get the interest charge for the month?

I'm looking at my statement and though it displays the proper interest rate, the effective rate when I do the calculation is higher.

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Try dividing by the number of days in a year and multiplying by number of days in your payment term (30, 31, 28, etc) Don't forget your principle and your payoff amount aren't the same... It should be close.

    Bookmark   June 28, 2013 at 11:34PM
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