Shortcut to Calculate Approximate Monthly Mortgage Payments

For a while now we have been hosting “Buying into Brooklyn” workshops for first time home buyers with questions. By our side has been local loan officer Mark Maimon from Freedom Mortgage and we really can’t say enough nice things about him. He recently shared this shortcut for calculating mortgage payments with us and we wanted to pass it along below. You can join us, along with Mark and his colleague Gabi Feuer, for our next Buying into Brooklyn: Open House Edition on June 24th!
Need a ballpark estimate of monthly principal and interest mortgage payments on the fly?  There’s a shortcut for that!  The calculation below can be used to estimate ballpark figures with a relatively small margin of error. Here’s how we do it … 
 
Approximate Mortgage Payment Calculation
 $5 for every $1,000 borrowed (assumed rate of roughly 4%)
Example:  On a loan of $500,000:   500 x $5 = $2,500 per month approximate monthly payment
 
These figures are not exact, but are a good way to get a ballpark monthly payment quickly for your clients.
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