Approximate Rules To Calculate Monthly Mortgage Payments

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.