There are a few very easy ways by which you can calculate daily mortgage rates and now it is made even simpler with steps mentioned below.Many people have wrong perceptions about loans and mortgages. However, in reality the daily mortgage rates are as easy to calculate as doing your monthly budget. All you need to be good at is some calculation. You can easily find out the monthly interest that you are entitled to pay. When you sit with the mortgage rates and the rules of calculating them, you can easily make yourself understand. Also, there will be bank professionals who will help you know how things work in the finance world pertaining to mortgage.
- Carefully go through your mortgage statement. It will help you determine the precise amount of principal that is on your loan. When you know the principal balance that you borrowed, you will be able to calculate how much you have to pay back. The amount that you pay as interest is on the amount that is remaining to be returned and not on the amount that you paid back.
- Your next step is to know the annual percentage rate on the amount that you borrowed. If you applied for daily mortgage rates, you will have to know about the percentage rate accordingly. You will find the percent mentioned on your statement.
- Then you need to divide the annual or monthly percentage rate by 365 (in case of annual) 31 or 30 (in case of monthly).
- Now divide the result that you got by 100 so that it converts into a decimal.
- Multiply the principal balance with the daily mortgage rates in the decimal form. The amount you get will be the money that you will have to pay as interest on each day while your principal will be the current balance. It will change to a number every time you make the principal payment.
- Now you will have to multiply the daily interest with the number of days that is allocated to you for your repayment period. It will help you to calculate the interest. The number that you get will be the amount that you will be charged for the month.
There are several online calculators set up by different financial organizations. Such tools will help you get a better and even accurate result. The decimals that people tend to drop while calculating the daily mortgage rates are not dropped by the tool. You can in fact check if your manual calculation is correct.