Questions tagged [amortization]
any question related to the amortization of loan. Also refered to as EMI or repayment schedule
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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 ...
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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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What is the difference between an amortized loan and a non-amortized loan?
As an example, my parents told me that their current car loan is amortized. Does that make any practical difference to how they pay off their loan, as opposed to if their loan had not been amortized?
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Treatment of web domain ownership & reselling for tax purposes: Capital asset, or not?
I run a web publishing business. I buy a large number of domains — and occasionally sell one, although not frequently. Some domains are developed into websites, which bring in advertising ...
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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 ...
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Why are my auto loan payments calculated differently than my mortgage payments?
Last year I got a home loan that follows the standard Rule of 78s amortization schedule. I can easily predict how much of my mortgage payment will go to interest and how much to principal.
A few ...
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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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How do amortization schedules work and when are they used?
Specifically, I notice that on a mortgage statement, my payment is "amortized" so that at the beginning of the loan, I am paying almost entirely interest and very little principal.
However, on a ...
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What is the typical compounding/amortized period on US mortgage loans
In a different question it is stated that
Mortgages are compounded .. 12 times a year in the USA
Is this true or just applicable to that question?
I am looking at a site where it explains how to ...
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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 do I calculate the principal paid down on a mortgage?
I'm looking for an equation to find out the current principal on a mortgage. I have the following variables:
n periods
monthly payment amount
interest rate of mortgage
I'd like to know how much I'd ...
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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 ...
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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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If I put a large down payment (over 50%) towards a car loan, can I reduce my interest rate and is it smart to even put that much down?
I've saved a lot but not enough money for a car... I am looking to buy a nissan versa which is ~13000 out the door. I have ~11000 that I can put towards a down payment so I am just shy of the full ...
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How do I calculate APR from monthly instalments?
I have been given a quote for a car loan in Thailand. I want to calculate the APR but am not sure how. (All of the tools and explanations I’ve seen are going in the other direction, from a percentage ...
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