Monthly Mortgage Payments

Do monthly mortgage payments equal the stream of identical payments over the life of the mortgage that yields a PV that is equal to the loan principal?

If so, this doesn't seem to take into account the interest that you are paying each month.

I am just having trouble seeing where the formula to calculate monthly mortgage payments comes from.

M = P * ( I/12 / (1 - (1 + I/12) ** -N)) where N is the number of payment months.

Career Resources

+21	HOW DO I GET IN WITH THE NERDS AT LUNCH? SEEKING ADVICE: PIVOT FROM SALES MANAGEMENT TO JUNIOR TRADING MID 20s	TR	4	3d
+19	IB to Quant	TR	9	2h
+19	BB S&T New Graduate Analyst - Advice to progress as rapidly as possible	TR	7	1d
+17	S&T at a Bank -> Prop trading?	TR	9	1d
+16	indiviudal trading vs. institutional	TR	5	22h
+15	Looks like no 2025 offer for S&T, coming to the end of sophomore year.	TR	8	1h
+15	Barclays vs. RBC Capital Markets Quant Trading?	TR	3	1d
+14	Energy Trading: HEC Paris vs University of Geneva	TR	6	2d
+12	Chances of getting into trading as non-stem in 2024	TR	12	2d
+10	Which rotations to pick?	TR	3	34m

1	redever	99.2
2	Secyh62	99.0
3	BankonBanking	99.0
4	Betsy Massar	99.0
5	CompBanker	98.9
6	kanon	98.9
7	dosk17	98.9
8	GameTheory	98.9
9	DrApeman	98.8
10	Jamoldo	98.8

Monthly Mortgage Payments

Trending Content