Business & Finance Loans

How to Figure the Cost of a Home Loan

By Business & Finance Last updated Friday, May/24/2024

1). Multiply the number of years in the term of your home loan by the number of home loan payments you make each year to find the total number of payments made during the loan. If you make monthly payments, multiply by 12 to find the number of home loan payments. For example, if you took out a 25-year mortgage, you would multiply 25 by 12 to find you would make a total of 300 payments.
2). Multiply the number of home loan payments you have to make by the monthly payment. For example, if your mortgage has a $1,382.11 monthly payment, you would multiply $1,382.11 by 300 to get $414,633.
3). Add the closing costs that you pay to the result from Step 2 to find the total amount paid to the lender. For example, if you paid $6,000 in closing costs, you would add $6,000 to $414,633 to get $420,633.
4). Subtract the amount of money that you borrowed to find the total cost of your loan. Finishing the example, if you borrowed $210,500, you would subtract $210,500 from $420,633 to find the total cost of your home loan would be $210,133.

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