Approximate Rules to Calculate Monthly Mortgage Payments
No Thumbnail Available
Authors
Chung Beck
Jongwood Jongwood
Khamis M Bilbeisi
Issue Date
Type
Journal Article, Academic Journal
Language
Keywords
Alternative Title
Abstract
There are many tools to calculate the monthly mortgage payment. If,
however, any of these tools is not immediately available, it may not be
easy to calculate the monthly mortgage payment. We propose three
approximate rules for two popular 15- and 30-year mortgage terms.
These rules work very well for historical mortgage interest rates that
range from 4% to 15%. Not only financial professionals but also
academicians can use them very easily in any informal situation without
regard to availability of specific tools.