All Questions
Tagged with amortization interest-rate
5
questions
1
vote
1
answer
106
views
If APY factors compounding (while APR doesn't), shouldn't APY always be higher than APR?
So, from what I understand:
APR: rate advertised to borrowers (without compounding)
APY: rate advertised to lenders (with compounding)
So, for a loan with APR of 6%, that compounds monthly:
APY = (...
1
vote
2
answers
149
views
Is this a weekly compounding loan amortization schedule?
I am currently having a disagreement with my colleagues regarding whether a loan is compounding or not.
I have linked below an image of a amortization schedule for a 52 week term for a $50,000 loan. ...
2
votes
1
answer
545
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Interest only mortgage with extra payment towards principal
I am planning to take 30 year term 10 year interest only mortgage. I know following are pros can cons of this approach:
Pros:
possible free money, especially given low interest rates
lower payments (...
- 137
1
vote
1
answer
788
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Formula for previous months interest payment and balance - Reverse Amortization
I am trying to resolve an issue I am having where a system calculated incorrect additional payments on a loan for a couple of months, resulting in the new current balance being incorrect. I want to ...
- 113
10
votes
6
answers
6k
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Why making additional payment to mortgage counts towards principal? Why does it matter?
When it comes to mortgage advice, some people recommend making an extra payment. The logic is :"These extra payments are automatically applied to your principal, not interest".
Why does it matter if ...
- 16k