So you sold your asset and took back a mortgage. Congratulations! The buyers seem like nice regular folks and promise to make their monthly payments on time.
Your attorney or closing agent gave you a neat amortization schedule with all the payments listed for each month and how much goes to significant and how much to interest. You even get to procure an extra few bucks if the payment is not received on time.
Calculate Mortgage Interest
But what if you don't get a payment for that month? What if the payment is less than you thinkable, - or more than you expected? Now your neat amortization schedule is worthless. How do you calculate these irregular
payments? How much is interest? What is the remaining significant balance? What is the total interest received for the year?
