Hey Tyler here from the cash flow guys podcast today I'm going to take a brief minute to teach you how to figure out what your mortgage payments going to be assuming at the mortgage is fully amortized that means no balloon will cover balloon payments in another episode but just bear with me one second here we're going to start with the number of payments the keys of the ten B to financial calculator that's what we're looking at now it's called the ten B to financial calculator you can download this on google play the itunes app store you name it it's pretty much everywhere only cost you a couple dollars. This is an app I use in the field every single day countless times a day I've got one on my Mac I've got one on my iPhone my my macbook pro the hold at my iPad everything I've got it everywhere.
It's a great tool for financial calculations we're going to start with the key here is to put in what you do know and it will give you what you don't.
Let's assume we know everything but the payment and we're starting at the top here on the left we're going to start with the number of payments that end up at the top left thirty-year mortgage there's 12 months in a year times 30 years that's 360 payments and we're going to hit n for the duration at the number of payments then we're going to go directly over to the right it says interest rate per year let's assume we're paying 6% interest per year we're going to hit six and then interest per year the present value is the amount that we're going to borrow.
Let's pretend that we're going to get a property that's seller financed now technically when we're seller financing we're not really borrowing money instead we're making payments of payments of equity over time the calculations are the same.
Don't get all caught up in the dirty details whether it be seller financing or a bank mortgage you're still going to fail calculate it the exact same way in that case we're going to take the present value that's PV let's say we're doing talking about a hundred and fifty thousand dollar mortgage.
We'll hit one hundred and fifty thousand and then PV for present value and then the next two buttons here one is for payment and one is for future value if you had a balance remaining at the end of the certain cycle for example a balloon payment then you would put that amount here in future value but today we're not we're going to say it's fully amortized.
We're going hit zero future value and then from there we're going to the only thing we don't know now is the payments.
We're going to simply hit the PMT key and that tells us that a 30-year mortgage ammeter eyes at 6% interest 150,000 dollars the base payment that's principal and interest will be eight hundred ninety four dollars and 85 cents 894 eighty five hope you guys found this this helpful if you want to listen to my podcast if you hasn't listened to that already go to cashflow guys comm forward slash podcast you can also download episodes on iTunes stitcher SoundCloud and Google Play we hope you like it took some value out of this and learned our.