1. What is Net Mortgage?

Net Mortgage represents the remaining balance of a mortgage after accounting for payments made and interest accrued. It helps homeowners understand their current mortgage position.

2. How Does the Calculator Work?

The calculator uses the Net Mortgage equation:

Where:

• \( Principal \) — Original loan amount
• \( Payments \) — Total payments made toward principal
• \( Interest \) — Total interest accrued

Explanation: The equation shows how payments reduce your mortgage while interest increases what you owe.

3. Importance of Net Mortgage Calculation

Details: Calculating net mortgage helps homeowners track their equity, understand loan progress, and make informed financial decisions about refinancing or selling.

4. Using the Calculator

Tips: Enter the original principal amount, total payments made toward principal, and total interest accrued. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is this different from remaining balance?
A: Net mortgage gives a snapshot of your current position accounting for both payments and interest, while remaining balance typically refers to just the principal left.

Q2: Should I include escrow payments?
A: No, only include principal payments. Escrow payments for taxes/insurance don't affect your mortgage balance.

Q3: How often should I calculate this?
A: Monthly or quarterly calculations can help track your mortgage progress effectively.

Q4: Does this account for early payments?
A: Yes, as long as you accurately input your total principal payments and accrued interest.

Q5: Can this be negative?
A: Yes, if you've paid more than your original principal plus interest, though this is rare with standard mortgages.