You can also study the impact of making extra payments on any monthly payment date. You can get a longer amortization table by simply copying the last line as many times as necessary. Monthly Payment Mortgage Calculator - With Amortization Table This spreadsheet file calculates the payment given the principal, amortization term and nominal or quoted rate and computes the amortiztion table for five years. Monthly Payment Mortgage Calculator - No Amortization Table This spreadsheet file allows you to compare up to five mortgages - different rates, principals, amortization terms, etc. This simply means that the mortgage gets paid down slightly faster, since those extra pennies are applied to principal. Also, some lenders will round up the payment to the next dollar. Remember, these calculations are for the mortgage itself, and do not include any life insurance premiums added to the payment or property taxes that may get added. These files require a PDF reader, such as Adobe Reader.
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Therefore, we need to find the rate that compounded monthly, results in an effective annual rate of 6.09%. Why? Because this rate will get compounded monthly. However, you make your interest payments monthly, so your mortgage lender needs to use a monthly rate based on an annual rate that is less than 6%. Therefore, if you are quoted a rate of 6% on a mortgage, the mortgage will actually have an effective annual rate of 6.09%, based on 3% semi-annually.
![formula to calculate mortgage payment formula to calculate mortgage payment](https://spreadsheeto.com/wp-content/uploads/2019/07/formula-of-simple-loan-payment-calculator-annotated.png)
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With the exception of variable rate mortgages, all mortgages are compounded semi-annually, by law. Unfortunately, mortgages are not as simple. Therefore, a loan at 6%, with monthly payments and compounding simply requires using a rate of 0.5% per month (6%/12 = 0.5%). The simple explanation of this is that loans are usually very simple to deal with, since the interest is compounded with every payment. They will often find that they can figure out loan interest and payments, but mortgages baffle them. Many Canadians are mystified by the mortgage calculations. A Guide to Mortgage Interest Calculations in Canada A Guide to Mortgage Interest Calculations in Canada