Mortgage interest is the interest charged on a loan used to purchase a piece of property.
It is calculated as a certain percentage of the full mortgage loan and it is compounding.
Interest on your mortgage is generally calculated monthly.
Formula to calculate mortgage interest.
Example:
Suppose its your third month to pay your mortgage loan and your outstanding loan amount is $ 150,000, calculate your mortgage interest if your interest rate p.a is 5%.
Therefore, your mortgage interest is $ 625.
