# I know it's a stupid question, but... - Posted by Pavon Bailey

Posted by David Butler America’s Note Network on January 18, 2000 at 21:30:34:

Hey Julie,

Some title companies give them away for free. Or you can get them at most bookstores for about \$6 bucks. One of the most comprehensive, which uses many charts and formulas, is the Realty Blue Book, through Professional Publishing in San Rafael, CA, which runs about \$18.

By far the best method is to invest \$20 to \$30 in a financial calculator. They are the easiest, fastest, and most reliable to use. My personal favorite is the Texas Instruments BA II Plus, which runs \$30 at most office supply stores. Good Luck

David Butler, VP Broker Relations

I know it’s a stupid question, but… - Posted by Pavon Bailey

Posted by Pavon Bailey on January 18, 2000 at 17:08:21:

To all investors:

This may be a stupid question, but I have to know the answer to this. I know how to calculate interest and principal on a monthly payment (looked on noteworthyusa.net…great site), but I do not know how to calculate a monthly payment. Is there an equation that you use? For example, consider a 1 Mtg. for \$65000.00 payable at 8% interest over 15 years. Without using an amortization book or a financial calculator, what would be the monthly payment? Thank you, and have a wonderful and blessed day! Happy Investing!!!

Pavon

Formula for computing the monthly payment - Posted by Dave T

Posted by Dave T on January 18, 2000 at 21:50:21:

Monthly PMT = LoanAmount/((1-(1/(1+rate)^n))/rate)

Where rate is the monthly interest rate and n is the number of payment periods. The ^ means that the term (1+rate) is raised to the power of n.

While you don’t necessarily need a financial calculator to compute the monthly payment amount, you will at least need a calculator capable of raising a number to a power to use this formula.

Re: I know it’s a stupid question, but… - Posted by laser

Posted by laser on January 18, 2000 at 21:05:39:

there are 3-options to figure out the pribcipal§, and
interest(I).
You can use simple equation like: I = LA x R x T,
which I(interest), P(principal), LA(load amount) and
T ( time or total years). This equetion will give
you the total interest only, then you need to
divide by 12 to get montly interest payment and so
on… But mortgage Co, does not use this simple
equation. they use AMORTIZATION chart or other
financial software to calculate Principal and
Interest(PI). for example: Interest rate 8% , the
montly payment will be 9.56 per \$1000 for 15 years.
you do as following: 65000 x 9.56 / 1000 =\$621.400
the amount of \$621.4(about)is your montly PI (principal and Interest). You can find Amortization table in most Real Esate Book in your local library or community Colleges. But , I always use Real Esate
calculator , which you can purchase in your local
office supply store.

good luck.
Laser.

Used a Calc - Posted by PBoone

Posted by PBoone on January 18, 2000 at 17:46:54:

621.17 per mo.

OOPS!!! Sorry… - Posted by Pavon Bailey

Posted by Pavon Bailey on January 18, 2000 at 17:10:29:

Sorry people…it was noteworthusa.COM. Please accept my apology.

Correction in the Monthly Payment! - Posted by Jim LaVerdi

Posted by Jim LaVerdi on January 18, 2000 at 18:13:46:

\$621.18 sir . You were .01 off. That would total \$1.80 over a 15 year period. Now if that were compounded from the first day of the loan till the end Sheeeewww! See thats why I use the pre-printed Interest Amortization Tables. Besides it’s so much easier.

Re: Correction in the Monthly Payment! - Posted by Julie

Posted by Julie on January 18, 2000 at 18:59:33:

Where could I find those “preprinted Interest Amortization Tables”?
Thanks,
Julie