Calculate a Home Equity Loan Payment

Home equity loans typically require the borrower to make a monthly payment to the lender. That monthly payment generally includes an amount to pay down the loan principal, plus an additional amount to pay the monthly interest on the outstanding balance. Loan payments are amortized so that the monthly payment remains the same throughout the repayment period. During that period, the percentage of the payment that goes toward the principal will increase as the outstanding mortgage balance decreases.