How do I calculate the total cost of my mortgage over its term in Alaska?

by alf.kerluke , in category: Real Estate , 6 months ago

How do I calculate the total cost of my mortgage over its term in Alaska?

Facebook Twitter LinkedIn Telegram Whatsapp Pocket

1 answer

by ronaldo_von , 5 months ago


To calculate the total cost of your mortgage over its term in Alaska, you will need to consider the following factors:

  1. Loan Amount: Determine the initial loan amount you borrowed.
  2. Interest Rate: Know the annual interest rate provided by your lender.
  3. Loan Term: Decide the duration of the mortgage, typically measured in years.
  4. Payment Frequency: Determine whether your mortgage payments are made monthly, biweekly, or quarterly.

To calculate the total cost, follow these steps:

  1. Determine the loan term in months by multiplying the number of years by 12. For example, if it's a 30-year mortgage, the loan term would be 360 months.
  2. Convert the interest rate to a decimal by dividing the annual rate by 100. For instance, if the interest rate is 4.5%, the decimal conversion would be 0.045.
  3. Calculate the Monthly Payment using a mortgage calculator or formula. The formula is: M = P * (r * (1 + r)^n) / ((1 + r)^n - 1) Where: M = Monthly Payment P = Loan Amount r = Monthly Interest Rate (annual interest rate divided by 12) n = Total Number of Payments (loan term in months)
  4. Multiply the Monthly Payment by the total number of payments (n) to determine the total amount repaid over the loan term. This will give you the total cost of your mortgage.

Note: The total cost calculated above does not include other costs like closing costs, insurance, taxes, etc. It represents the repayment of the principal amount and interest.