The 2-Step Equations Worksheet is the first step in calculating your mortgage. It takes all of the variables you enter into the Mortgage Calculator and finds your approximate monthly payment.
You will enter a certain amount of money into the formula and you will also be asked to enter the interest rate. If you are paying an adjustable-raterate loan then the two will be entered separately. For fixed-rate loans you will be asked to enter the principal amount as well as the interest rate.
An important note is that the payments are only entered if the loan term is not greater than 25 years. If the loan term is greater than 25 years then the payments will be omitted. For example, if you have a five-year fixed rate loan you will enter a different amount for the payment and then the formula will return the total amount for the payment.
When you enter your variable’s interest rate and the principle amount of the results will be listed out in their correct form. The formula is very useful in determining what kind of payment you will be required to make every month.
The numbers you enter in the 2-Step Equations Worksheet will affect the results of the calculation. To calculate the payments and the interest you will need to add up the principle and the interest payment. The formula will convert the payment into a monthly percentage.
Another area where the formula is useful is when you want to find out how much of the principal payment will be deducted each month. In this case you would multiply the percentage with the total of the payments to find out how much of the payment is applied to interest and how much is applied to principal. Once you have figured out the amount of the payment that will be applied to interest, you can then find out how much of the payment will be applied to principal.
This same principle can be used when figuring out the percentage of the payment that will be applied to interest. After you have determined the payment that will be applied to interest, you can then determine how much of the payment will be applied to principal. The formula can also be used to determine the interest percentage.
If you are unsure of what your payment will be for the mortgage then you should consider using the 2-Step Equations Worksheet. If you have any questions or need more information on using the worksheet, or if you are considering using the mortgage calculator, you should contact a mortgage specialist.