1. Look to the table and find the interest rate of 6.5%
   
   
2. Then look for the number (factor) which is under the amortization period of 25 - you should see the number 6.7
   
   
3. 6.7 is the factor, this means that for every $1,000.00 you borrow it will cost you $6.70 per month to pay the loan.
   
   
4. If you then are borrowing $155,000.00 it will cost you 6.7 x 155,000.00/1000 = $1,038.50 per month to pay back the loan.
   
   

How to figure out how much a monthly payment of any amount will carry

1. Once you know how much you have available to pay per month for your mortgage - see [How Much Can I Afford?], you can use this number to calculate how much of a loan you can borrow.
   
   
2. Assume you have $1,350.00 per month with which to pay your mortgage.
   
   
3. You also need to know the interest rate and amortization period you are going to be using - assume your mortgage will be @7.25% amortized over 25 years; looking at the amortization table to the left you will see the factor for 7.25% interest amortized over 25 years is 7.16
   
   
4. To calculate the amount of the loan we divide the monthly payment by the factor and multiply by 1,000.00
   
   $1,350.00/7.6 x 1000 = $188,547.00 which is the amount we could borrow @7.25% amortized over 25 years.