As part of WordPress, the software that runs this blog, I can see the search terms that land people on my site. Almost every day, there is someone asking Google something like “what are my payments at 5% on $400,000″. Figured I’d share with you how I estimate those.
If I’m doing a spreadsheet, I just use the “PMT” function in either Excel or Google Docs. But that’s kind of annoying for someone who isn’t a former investment banker / Excel jockey (and you should see me on Power Point…).
Assuming you’re not one of that sorry brother/sisterhood, just go to this website here. Plug in the correct loan amount, interest rate and re-payment term (almost always 30 years) and click “submit”. The site will spit out your estimated monthly payment in bold black text.
(Note: I apologize in advance for the ads… it’s a really cheesy site!)