North Florida Lenders use amortization tables to calculate the principal and interest you are paying. The amortization tables calculate the first monthly payment of a 30-year, $100,000 mortgage loan at 7.5 % interest to be $699.21. To figure this, first calculate the annual interest by multiplying $100,000 x .075, which equals $7500. Divide this figure by 12, which equals $625. Subtract $625 from the monthly payment of $699.21, and you can see that $625 of the payment is interest and $74.21 goes toward the principal.

To determine the next month’s principal and interest payments, we subtract $74.21 from $100,000, and get the new unpaid principal balance of $99,925.79. Repeat the above steps to figure out your principal and interest. Multiply $99,925.79 by .075, which gives you $7,494.43. Divide it by 12, and you get $624.54. This means that $624.54 goes to interest and $74.67 goes to your principal loan. These calculations determines on a monthly basis how much equity you are building in your Jacksonville Fl home.