My goal is to determine the total cost of a mortgage loan (principle + interest for 30 years) I assumed that the future value(FV) of a loan is the total amortized cost of the loan. Is that assumption incorrect?
For a loan amount of 480,000 at an annual interest rate of 4.414%,
My FV calculation: PV * (1 + r)n =
480,000 * (1 + 0.04414/12)^360 =
Using an amortization chart in google sheets:
INTEREST PMT $386,744.46
PRINCIPAL PMT $480,000.00
For principal pmt. for every period, I used the following expression :
For interest pmt. for every period, I used the following expression:
As you can see, I ended up with two different values(1800026.445 and $866,744.46). Wondering if there is a quicker way to compute the total cost of a loan if future value is not the right path?