mortgage-repayment-calculator

Community feedback

• 

  Krushna Sinnarkar•1,100

  @krushnasinnarkarPosted 4 months ago

  Hi @Hexerse,

  Congratulations on successfully completing the challenge!

  Your solution looks nice, though there are a couple of things you can improve, which I hope will be helpful:

  Mortgage Calculation Information

  There are two main types of mortgage calculations based on the type of mortgage: Repayment and Interest Only.

  1. Repayment Mortgage For a repayment mortgage, each monthly payment includes both interest and a portion of the principal. The formula to calculate the monthly payment (M) is:

     M = P * { [r(1+r)^n] / [(1+r)^n - 1] }

     Where:

     • ( M ) is the monthly payment.
     • ( P ) is the principal loan amount.
     • ( r ) is the monthly interest rate (annual interest rate divided by 12).
     • ( n ) is the number of payments (loan term in years multiplied by 12).

  2. Interest-Only Mortgage For an interest-only mortgage, you only pay the interest on the loan each month. The principal is not reduced. The formula for the monthly interest payment (M) is:

     M = P * r

     Where:

     • ( M ) is the monthly interest payment.
     • ( P ) is the principal loan amount.
     • ( r ) is the monthly interest rate (annual interest rate divided by 12).

  Example

  Let's assume the following details for a mortgage:

  • Mortgage Amount (P): $200,000
  • Mortgage Term: 30 years
  • Interest Rate: 5% annual
  • Mortgage Type: Repayment

  Repayment Mortgage Calculation

  1. Convert the annual interest rate to a monthly rate:

     r = {5%}/{12} = {0.05}/{12} = 0.004167

  2. Calculate the total number of payments:

     n = 30 * 12 = 360

  3. Plug these values into the formula:

     M = 200,000 * [ {0.004167(1+0.004167)^{360}} / {(1+0.004167)^{360} - 1}]

  4. Calculate:

     M = 200,000 * 0.004167 * 4.4677 / 3.4677 = 200,000 * 0.001282 = 1027.04

     So, the monthly payment for a repayment mortgage would be approximately $1,027.04.

  Interest-Only Mortgage Calculation

  1. Convert the annual interest rate to a monthly rate:

     r = {5%} / {12} = {0.05} / {12} = 0.004167

  2. Calculate the monthly interest payment:

     M = 200,000 \times 0.004167 = 833.33

     So, the monthly payment for an interest-only mortgage would be $833.33.

  These formulas will help you calculate the mortgage repayments for both types of mortgages.

  Design Improvements

  1. Border Radius:

     • Add a border radius to .mortgage__calculator and the bottom-left radius to .results__empty to improve the design.

     .mortgage__calculator {
       border-radius: 10px;
     }
     
     .results__empty {
       border-bottom-left-radius: 25%;
     }
     

  2. Centering the Mortgage Calculator:

     • Align the .mortgage__calculator to the center by making changes to the body styles. Use align-items: center instead of align-content, and change the height to 100vh instead of 100%.

     body {
       display: flex;
       justify-content: center;
       align-items: center;
       height: 100vh;
     }
     

  I hope you find this helpful.

  Feel free to reach out if you have more questions or need further assistance.

  Happy coding!

  Marked as helpful

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