1. What is the Duplex Mortgage Payment Formula?

The mortgage payment formula calculates the fixed monthly payment required to pay off a loan over a specified term. It's based on the principal amount, interest rate, and loan duration, providing a consistent payment amount throughout the loan period.

2. How Does the Calculator Work?

The calculator uses the mortgage payment formula:

Where:

• \( Principal \) — Original loan amount ($)
• \( r \) — Monthly interest rate (annual rate ÷ 12)
• \( n \) — Total number of payments (months)

Explanation: The formula calculates the fixed monthly payment that covers both principal and interest, ensuring the loan is paid off exactly at the end of the term.

3. Importance of Mortgage Payment Calculation

Details: Accurate mortgage payment calculation is essential for budgeting, financial planning, and determining affordability when purchasing a duplex property.

4. Using the Calculator

Tips: Enter the principal amount in dollars, annual interest rate as a percentage, and loan term in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in the monthly payment?
A: This calculation includes principal and interest only. Actual payments may include property taxes, insurance, and PMI if applicable.

Q2: How does interest rate affect the payment?
A: Higher interest rates increase monthly payments significantly, while lower rates reduce them for the same principal amount.

Q3: What's the difference between 15-year and 30-year terms?
A: Shorter terms have higher monthly payments but much less total interest paid over the life of the loan.

Q4: Can I calculate payments for different payment frequencies?
A: This calculator assumes monthly payments. For bi-weekly or other frequencies, the formula would need adjustment.

Q5: Does this work for adjustable-rate mortgages?
A: This formula is for fixed-rate mortgages. ARM calculations are more complex as rates change over time.