# How to use a mortgage calculator. How to calculate your monthly mortgage payments

##### Use a mortgage calculator. Mortgage calculator in Canada. What is an amortization period? What is a fixed term. What is a variable rate. What is a fixed rate. Monthly mortgage payments. Principle payments vs interest payments. Canadian mortgage. Realtor in Parry Sounds. Realtor in Muskoka.

Hello today i’m going to use a mortgage calculator to quickly figure out what your mortgage payments would be based on the current market and based on the current rate my name is steve williams i work with solid rock realty in the parry sound and muskoka districts and would love to have a chat if you’re looking uh to invest in real estate get in real get into real

Estate or sell your property or cottage or whatever it is just let me know my contact information is below and i’d be happy to have a conversation at any time so let’s get right to it um today i’m actually using the rbc this is the rbc mortgage payment calculator i’m using the advanced selection so let’s use an amount of 650 000 a lot of people ask me what the

Amortization period is so i’m actually going to show you this is a loan amortization schedule and basically what the amortization period is is it’s the amortization schedule shows you what would happen every month over the 25 years or whatever it’s amortized for um and in this situation i already keyed in the information that i took from the rbc website so 650 000

The current rate today which is april 26 2022 4.14 uh 25 years monthly payments and then this shows you your monthly payment would be 3481.38 and when you’re looking at that actually only 1238.88 for the first month goes towards the principal meaning paying down your mortgage amount of six hundred fifty thousand so you can see here the difference between these

Two is actually this amount and the the rest you’re paying in interest to the bank so when we’re looking at this that’s what that amortization period is i had already selected on the spreadsheet that we’re doing monthly payments and this is the interest rate that we’re using now that’s for the fixed term if you choose variable this amount would actually be much

Different and it would be based on what the rate is of that month or day or particular time a lot of people have chosen variable because the rates have been so low for so long that they’ve been capitalizing on having very low interest rates and which decreases again if we look back at that amortization schedule it decreases the amount that you’re paying towards

Interest as opposed to principal but now with the way the bank rates have gone up the last few uh a few times this year already a lot of people are interested in getting into a fixed amount which is a fixed rate and a fixed term so in this particular case this is a fixed term of five years and this fixed term means that’s how long you would be paying and have

This mortgage with rbc or whoever it is i’m using rbc in this case and then you’d have to renegotiate your mortgage after that fixed term so in this case you can go up to i guess it’s 25 years here where you could actually do it as long as the amortization period i don’t actually think they offer that so i don’t know why that’s even an option here but they do

Offer up to 10 years now each time you would increase a year the interest rate would change a little so that’s something to keep in mind so if we’re looking at the five years we’ll just go back to the amortization schedule here as i said you’re at three thousand four eighty one thirty eight now something to really keep in mind is that this is only the mortgage on

Top of the mortgage you’re going to need to pay interest or sorry insurance on the property most i think all mortgage lenders esp like all um a lenders require you to have insurance on the property most b lenders as well but you have to have insurance so that’s one property tax is another you’re going to have repairs and maintenance on the property you’re going

To have you know your internet your hydro your gas propane whatever it is so this is just one amount that i wanted to show you how to calculate how it works how the amortization schedule works if you have any questions don’t hesitate to contact me my website is dream muskoka dot ca my phone number is 705-955-2233 i’d be happy to have a free consultation with you

Whether you’re selling or buying or just wanna have a chat i’m happy to do that