Learning about mortgages

Do a google search on certificate 4 mortgage broking
or on a cheaper note
http://www.amazon.com/Mortgages-For-Dummies/dp/B001NH4ARI/ref=sr_1_2?ie=UTF8&s=books&qid=1257413542&sr=8-2
http://www.amazon.com/Understanding-Your-Mortgage-Patty-Crowe/dp/097762692X/ref=sr_1_13?ie=UTF8&s=books&qid=1257413542&sr=8-13
http://www.amazon.com/Rules-Mortgages-Dale-Robyn-Siegel/dp/1592579485/ref=sr_1_34?ie=UTF8&s=books&qid=1257413751&sr=8-34
http://www.amazon.com/Mortgage-Confidential-What-Need-Lender/dp/0814473695/ref=pd_sim_b_2

Not sure on the books as they may be american and it may be different to australia.
I learnt my knowledge from doing Certificate 4 in Mortgage broking and completing a bachelor of commerce degree .

Interest is calculated Daily.
Daily interest = annual interest rate / 365 (or 360 USA value) * loan balance owing on day.
Then each daily interest calc it is added up for the whole month to come up with the monthly interest charge.
Ask your mortgage provider and they will tell you if they use 365 or 360 in their calculation
Also monthly fee may need to be added to loan balance once a month on a particular day.

A lazy way is to download the amortization template spreadsheet for excel from microsoft.

There is another formula which is FV= PV* (interest rate for period +1)^n
                                                                       n being periods of interest charged
FV = final value
PV is first balance of loan. (say 400,000 as eg)
So monthly would be 12 for n and I= interest rate/12
Then n * 20 for 20 years
n = 240 periods
FV = 400,000 * ((6.5%/100)/12)+1) to the power of 240

Here is a good website form where you can learn all about mortgages

http://www.mtgprofessor.com/home.aspx