Mortgage interest is the interest charged on a loan used to purchase a piece of property.
It is calculated as a certain percentage of the full mortgage loan and it is compounding.
Interest on your mortgage is generally calculated monthly.
Formula to calculate mortgage interest.
Suppose its your third month to pay your mortgage loan and your outstanding loan amount is $ 150,000, calculate your mortgage interest if your interest rate p.a is 5%.
Therefore, your mortgage interest is $ 625.