- 1). Consult your most recent mortgage statement or you can contact your mortgage lender to determine the amount outstanding on your mortgage.
- 2). Divide the annual interest rate of your mortgage by 12 (the number of months per a year) to find the monthly interest rate. For example, if your annual interest rate equals 8.64 percent, you would divide 0.0864 by 12 to find the monthly interest rate to be 0.0072.
- 3). Multiply the monthly interest rate on your mortgage by the outstanding principal on your loan to calculate how much of your monthly mortgage payment goes toward interest. For this example, if your outstanding balance equals $90,000, you would multiply $90,000 by 0.0072 to find the monthly interest equals $648.
- 4). Subtract that amount of interest from your total monthly payment to calculate how much your mortgage balance will go down. In this example, if your monthly payment was $1,000, you would subtract $648 from $1,000 to find that your mortgage principal would decrease by $352.
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