How is interest rate calculated for a floating mortgage
I am trying to calculate the amount of interest I need to pay for a mortgage that just turned from fixed to floating.
- Current balance is: -550,000
- Interest rate: 5.95%
- Original term: 30 years
The monthly interest is calculated as:
- 550000*0.0595/12 = 2727.08333
The fortnightly interest is calculated as:
- 2727.08333/2 = 1363.54
Was I correct?