Tennessee Mortgage Calculator
An interest rate is the percent of principal charged by the lender for the use of its money. Interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
Interest rates are applied in numerous situations where lending and borrowing is concerned. Individuals borrow money to purchase homes, fund projects, start businesses, pay college tuition, etc. Businesses take loans to fund capital projects and expand their operations by purchasing fixed and long-term assets such as land, buildings, machinery, trucks, etc. The money that is lent has to be repaid either in lump sum at some pre-determined date or in monthly installments, which is usually the case
The difference between the total repayment sum and the original loan is the interest charged. The interest charged is an interest rate that is applied on the principal amount.
For example, if an individual takes out a Rs 3,00,000 mortgage from the bank and the loan agreement stipulates that the interest rate on the loan is 15%, this means that the borrower will have to pay the bank the original loan amount of Rs 3,00,000 + (15% x Rs 3,00,000) = 3,00,000 + 45,000 = Rs 3,45,000.
This Rs 45,000 is the interest which is to be paid with principal amount for one year.
Mortgage Calculator TN
Use the RedRealty.com mortgage calculator to determine your monthly mortgage payment and generate an estimated amortization schedule for your home loan. Quickly and easily see how much interest you could pay and your estimated principal balances. You can even enter prepayment amounts to calculate their impact on your mortgage payment schedule.