12% Fixed-Rate Mortgage Calculator
Specialized high-interest mortgage calculator for private lending scenarios. Highlights the Interest vs. Principal split and equity risks.
About
In high-risk lending or private money scenarios, interest rates often hover around 12%. At this rate, the amortization curve is brutally skewed towards interest payments, especially in the early years. This calculator is designed to expose the reality of such loans. Unlike standard bank mortgage tools, it focuses on the "Equity Gap" - showing exactly how little principal is paid off during the initial term.
This tool is essential for borrowers considering hard money loans or bridge financing. It calculates the monthly payment and visualizes the cost of borrowing, ensuring users understand that at 12%, a standard 30-year term results in paying the loan amount back multiple times over in interest alone.
Formulas
The monthly payment M is derived using the amortization formula:
Where r is the monthly rate (0.12 ÷ 12) and n is total months.
Reference Data
| Loan Amount | Rate | Term | Monthly P&I | Total Interest (30yr) |
|---|---|---|---|---|
| $100,000 | 12% | 30 Years | $1,028.61 | $270,301 |
| $200,000 | 12% | 30 Years | $2,057.23 | $540,601 |
| $100,000 | 12% | 15 Years | $1,200.17 | $116,030 |