All Questions
Tagged with amortization interest
16
questions
6
votes
4
answers
4k
views
How exactly does a biweekly payment schedule on your mortgage reduce the amount of overall interest paid over the life of the loan?
Here is how a normal fixed-rate monthly amortization schedule is calculated:
First we determine the total monthly payment:
Payment = [P*(r / n)(1 + r / n)^nt] / [(1 + r / n)^n*t - 1]
where n = 12, P ...
- 161
1
vote
2
answers
122
views
Additional principal payment split between interest and principal [duplicate]
I made an additional payment with my first mortgage payment but I noticed that although I designated the additional payment, say $10, as principal the remaining principal balance didn't go down by the ...
- 729
1
vote
2
answers
202
views
Does partial prepayment on interest only loans goes towards principal
I am applying for 30 year term, 7/1 ARM with 10 year interest only loan.
This is what I received from my lender:
My question:
During interest only period, if I make partial prepayments, does it ...
- 137
1
vote
1
answer
3k
views
Formula for time taken to pay off loan with annual interest and monthly repayments
I am trying to find how to work out the period of time it will take to pay off a loan. There are plenty of online calculators out there but I cannot find the formula they use. I want to recreate the ...
- 113
1
vote
1
answer
322
views
When I capitalize amortization table, the present value doesn't equal the sum of PV or the XNPV
How is it that when I capitalize an amortization table, the present value doesn't equal the sum of PV or the XNPV formula of all the future payments?
If I capitalize the future payments with the same ...
- 65
5
votes
7
answers
6k
views
How does paying extra on my mortgage affect my amortization schedule?
I am a first time home buyer and have some spare cash after my home purchase to pay forward quite a bit of money (cash was not available during actual purchase, so, no, I could not have put it towards ...
- 2,898
2
votes
4
answers
2k
views
Do extra mortgage payments typically go directly towards principal?
I have a 30 year mortgage and I'd like to make extra payments each month to speed up the amortization schedule. I thought this would be better than taking out a 15 year mortgage as it gives me some ...
- 21
1
vote
2
answers
1k
views
What's an easy way to create a floating amortization loan? [duplicate]
When dealing with a mortgage company, paying off a loan is quite simple. Now everything is online and most of the times you can pay more than the minimum payment each time. Each month the interest ...
- 111
0
votes
1
answer
1k
views
Calculating Interest Accrued for a late payment
I'm trying to calculate the interest accrued on my amortization schedule manually. I can calculate it fine if payments are exactly one month apart but this payment is More than 1 month apart.
This ...
- 389
3
votes
2
answers
3k
views
Calculating amortisation payment amount, where first payment date differs from loan start date
I'm trying to reproduce the schedule, but I cant seem to get the same Payment and Interest for each month. The tricky part here is that the Loan start date is 9 Feb 2017 but the first payment is only ...
- 133
3
votes
2
answers
545
views
Mortgage change of terms (lower rate) increases payment amounts
My bank now offers lower interest rates than what I got when I first started my mortgage. I called to see about changing my terms (lower rate, same payoff date), and they said it would actually ...
- 33
4
votes
2
answers
5k
views
How to recalculate an amortization table after making a large payment?
I have an auto loan I wish to apply a very large amount to. I have a amortization table that shows me details for each payment I make. Here's where it gets complicated...
My lender does not allow ...
- 141
0
votes
1
answer
13k
views
What is the formula for loan payoff with daily compounded interest and monthly payment?
My goal is to make a graph using this formula for all possible monthly payments.
Let's say...
Loans: 21750
Monthly Payment: 220
Daily Interest: 4.0% / 365
What formula would I use to get the total ...
- 125
-4
votes
5
answers
999
views
Mortgage vs. Loan?
I understand the math behind how banks calculate the interest to principal ratio throughout the amortization period. I want to know why banks want you to pay as much interest as possible first? In a ...
- 123
39
votes
7
answers
106k
views
Why do banks want you to pay off interest before principal?
When you take out a traditional mortgage the first payment you make to a bank pays off mostly interest and then later payments start paying off principal.
What is the reason for this?
Is it just a ...
- 819