Calculating mortgage payments is crucial for individuals planning to finance their homes over an extended period. A 25-year mortgage is a common choice, offering a balanced timeframe for repayment.

**Formula:** The formula for calculating the monthly mortgage payment is derived from the amortization formula. It considers the loan amount, annual interest rate, and loan term to determine the fixed monthly payment.

**How to Use:**

- Enter the loan amount in the “Loan Amount” field.
- Input the annual interest rate in the “Annual Interest Rate (%)” field.
- Specify the loan term in years using the “Loan Term” field.
- Click the “Calculate” button to obtain the monthly payment.

**Example:** For instance, if you have a $200,000 loan with an annual interest rate of 4% over 25 years, the calculated monthly payment would be displayed after clicking “Calculate.”

**FAQs:**

*What is a 25-year mortgage?*- A 25-year mortgage is a home loan that is repaid over a period of 25 years.

*How is the monthly payment calculated?*- The monthly payment is calculated using the loan amount, annual interest rate, and loan term with the amortization formula.

*Is the interest rate compounded monthly?*- Yes, the calculator assumes monthly compounding for interest.

*Can I use this calculator for other loan terms?*- No, this calculator is specifically designed for 25-year mortgage calculations.

*Is the result an exact amount I will pay each month?*- Yes, the result represents the fixed monthly payment for the specified loan parameters.

**Conclusion:** This 25-year mortgage payment calculator simplifies the process of determining your monthly mortgage obligations. Use it to plan your budget and make informed decisions when financing your home.