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Monthly Mortgage Interest Calculation

Posted by tryingtogetby (My Page) on
Fri, Jun 28, 13 at 18:23

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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RE: Monthly Mortgage Interest Calculation

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.

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