How can I develop mortgage repayment formula by working with some real numbers? If I take some real numbers say $500,000 of mortgage and then showing i pay say $3000 every month. I pay this amount every month towards mortgage repayment but it is just enough to take the value of my mortgage down a little bit and then i pay off interest and theres a pattern.
Here’s what I did:
i modelled it using geogebra and plotted graphs using 12 months of principal and interest data and that gave me 2 separate equations for principal and interest
Like y (subscript 1) = 2403.8022 * 0.9985 ^x
This equation shows interest
y(subscript 2) = 689.2027 * 1.005 ^x
This equation shows principal
on adding these 2, we get the monthly mortgage payment amount.
But it seems there’s still another way to derive the formula using numbers.
Can you share inputs what could be the other way to derive mortgage formula using real numbers?
Here’s what I did:
i modelled it using geogebra and plotted graphs using 12 months of principal and interest data and that gave me 2 separate equations for principal and interest
Like y (subscript 1) = 2403.8022 * 0.9985 ^x
This equation shows interest
y(subscript 2) = 689.2027 * 1.005 ^x
This equation shows principal
on adding these 2, we get the monthly mortgage payment amount.
But it seems there’s still another way to derive the formula using numbers.
Can you share inputs what could be the other way to derive mortgage formula using real numbers?