Mortgage can be called as a debt instrument. That is there is an obligation for burrowers to pay back payments which is predetermined .
This is the amount you will pay for some years. For instance, this value can be the value of the home which you want to buy.
Down payment is defined as an initial payment while you are buying something on credit.
This is the number of months or years you will be paying the loan .
Annual Interest Rate
This is the annual interest rate of mortgage loan.
Suppose we have a $200000 mortgage loan, and suppose it has the following properties:
Mortgage Amount = $200000
Down Payment = $20000
Loan Term = 15 years ( number of years you will pay loan) or 180 months
Annual interest = 6%
Then your estimated monthly payment = $1518.942
1. Mortgage. (n.d.). Retrieved from http://www.investopedia.com/ terms/m/mortgage.asp
2. (n.d.). Retrieved from http://www.wikihow.com/ Calculate-Mortgage-Payments