All Questions
Tagged with amortization principal
9
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
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
1
answer
182
views
What is the formula for loan payoff with daily compounded interest and annual payment?
I am trying to get the loan repayment amount for below data :
Loan Amount: $20,412.65
Payments (#): 10
Annual Interest Rate: 2.5%
Loan Date: 07/02/2018
First Payment Due: 09/02/2018 (next payment ...
- 11
3
votes
2
answers
2k
views
Credit Card Amortization via Principal-Only Payments
On a home loan amortization schedule, I can make the monthly payment and add the principal-only owing for the "next" payment along with it, and avoid paying the interest for that next month, which ...
- 33
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
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
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
10
votes
6
answers
6k
views
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