How to Calculate Your House Payment

The basic calculation for a house payment is to multiply the annual interest rate times the loan times the number of months of the mortgage. For example, 5 percent -- interest rate -- times $250,000 -- mortgage amount-- times 360 -- 30 year mortgage -- equals $450,000. Divide that by 360 for the monthly payment of principle and interest of $1,250. This gives you a pretty close approximation.

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