Questions tagged [amortization]
any question related to the amortization of loan. Also refered to as EMI or repayment schedule
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Amortization of patent when useful life exceeds legal life [closed]
Say that "Juan" has a patent with a legal life of ten years. However, because the patent applies to an extremely niche area with no competitors, he estimates that its actual useful life is ...
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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 ...
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How to prepare constant annuity amortization table for a simple interest loan?
My company (in which I work) offers a home loan of ₹60,00,000 with simple interest. It is written in terms and conditions of this loan that principal shall be repaid in not more than 225 monthly ...
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How to solve amortization schedule where 10% of the interest is paid back on 4th payment
I am trying to find an algorithm to solve this amortization schedule:
P = 1000, term = 12 months, Interest=5%, calculation based on actual/365.
10% of the total interest of the loan is added to the ...
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How is the time saved calculated if you do an overpayment on a mortgage to reduce the term?
I would like to know the equation to work out how much money is saved if you make an overpayment on a mortgage to reduce the term.
There is a promotional rate for the interest, and a standard variable ...
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Are there any amortized home mortgage loans where the monthly payments are distributed equally between interest and principal?
Are there any type of home mortgage loans where the amortized monthly payments are equally distributed towards the interest and principal? I understand this would violate the current formulas used to ...
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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 = (...
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Why aren’t amortized loans outlawed and replaced with a more equitable model to the borrower?
I completely understand that banks are in the business of making money and capitalism prioritizes profit above all other values. However why aren’t laws enacted that would ban amortized loans and ...
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Creating an amortization schedule for a loan with variable interest that compounds 2x per year
Has anyone created an amortization schedule for a loan with a variable interest rate that also compounds 2x per year?
The loan has a set payment amount (15k monthly), but because the interest is ...
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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 ...
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Alternative (simplified) way of calculating loan repayments
I'm working on a small program to calculate, among other things, mortgage/credit repayments. Searching the internet I got what appears to be the typical repayment formula.
principal 100,000 at 2% ...
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Subtract D&A is necessary
I read Warren Buffett and the interpretation of the financial statements, but depreciation and amortization thing still confuses me a lot. When I look at the Microsoft's income statement (i.e. https://...
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Why does the TD Bank principal portion of a mortgage payment go up and down in sawtooth? (why is interest payment on annuity in arrears non-monotonic)
I'm trying to understand the amortization schedules of TD mortgages, as produced by the TD Calculator.
The monthly payment amounts (on this fixed rate mortgage) are predictable and constant, but the ...
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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. ...
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How can I calculate amortized payment when the payments are made in advance?
I'm trying to calculate the payment amount on an amortized loan with interest where the payments are made in advance.
If the payments are made in arrears there's a simple formula, but since the first ...
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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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