Questions tagged [amortization]
any question related to the amortization of loan. Also refered to as EMI or repayment schedule
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Formula for calculating a reamortization
So my friend recently recasted/reamortized a loan. Initially, they had a principal loan balance of $13,000 at an interest rate of 5.99% over 7 years (84 months). They verified the loan company's ...
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How To Optimize Loan Payback?
Say I have a $100k 3% mortgage with min $1k payment, $10k 5% car loan with $100 min payment and $1k 20% credit card with $50 min payment. If I have $1500 to spend, I need to split that to pay back at ...
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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 ...
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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 (...
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Which method to amortize my single family rental and what else do I need to know?
I am renting out my primary residence (outside the US) for about $1400/mo., which method to amortize my single family rental on my 1040 and what else do I need to know to correctly amortize? I started ...
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Do bank use the same math formula to calculate the mortgage amortization table?
I've started making a spreadsheet to evaluate mortgages and how they would fit other financial plans. The most complicated part seems to be the mortgage calculation formula. That's the formula the ...
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Modeling wealth over time in a home [closed]
Suppose a person decides to buy a house and finance it by taking out a mortgage. I am attempting to model the wealth of this person over time. I need some help deciding whether this system of ...
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Remaining Balance Formula for Actual/360 and Actual/Actual Accrual Methods
Is there a concise formula for calculating the remaining balance of a loan with actual/360 and actual/actual accruals?
I know for 30/360 amortizations, the remaining balance is just the FV of the ...
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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 ...
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What is a fair way to split the profits for a co-owned property?
Seeking out some financial guidance...
My partner and I recently purchased a home with my sister and brother-in-law. All spaces will be shared with the exception of bedrooms. We will be meeting with ...
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Loan Amortization with first payment period less than others
I'm trying to make loan amortization schedule where Interest rate is calculated on the exact period dates. (installment dates taking into account weekends and public holidays) and with the first ...
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Interest and principal line-item amounts for seasonal mortgage
I'm working with this question: Seasonal Loan Amortization. I wondered if someone could elaborate how to calculate the principal and interest portions of the payments when they are paid. The article ...
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Is the principle payment in an amortization schedule the amount that goes towards how much of the house you own?
When I first learned of amortization schedules I was confused by the division of payments into "interest" and "principle". I think I get it now: isn't it that the principle payment ...
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How are fractional cents handled when bank create a loan payment schedule
I am working on developing my own loan payments schedule generator and I have a question regarding how fraction cents
For example, this load:
Principal: $10,000
Interest: 5% per year
Period: 48 ...
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'principal balance' vs 'outstanding balance'
Is 'principal balance' same as 'Outstanding Balance'? My understanding is - In amortisation schedule, Outstanding balance gets reduced according to 'principal' portion of your monthly payment. After 6 ...
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