Loan Amortization, Loan Amortization Templates, amortization formula.#Amortization #formula


Loan Amortization

Amortization formula

Student Loan Calculator

College is a great and enriching experience. Not only did you get to choose to study the things you love, but now you have the opportunity to take your degree and make a

Amortization formula

Loan Calculator Template

Loans are a major decision for any person. You need to consider every aspect that goes along with a loan, especially the interest. The Loan Calculator is a great way for you to

Amortization formula

Commercial Loan Document Checklist

When putting a commercial loan together, it’s best to be prepared before you enter into an agreement. The Commercial Loan Document Checklist is a good way to prepare all of the documentation you

Amortization formula

Amortization Formula Excel

Ask any financial adviser or a financially savvy individual what one of the most critical components for those to keep track of in regards to their financial status, nearly all will include current

Amortization formula

Biweekly Mortgage Payment Amortization

Mortgage holders will want to make sure that they are capable of making payments that will reduce the principal over time. Using the biweekly mortgage payment amortization schedule, consumers can simplify this process .

Amortization formula

Calculation Mortgage Payments

Calculation Mortgage Payments Use our Calculation Mortgage Payments Excel Template to estimate your monthly mortgage payments. Enter the principal, interest rate, loan period, and the start date in this mortgage payment calculator. Download this


PMI – What Is Private Mortgage Insurance, mortgage payment formula.#Mortgage #payment #formula


Private mortgage insurance, or PMI: Just the basics

Mortgage payment formula

If your down payment on a home is less than 20%, you will have to pay for mortgage insurance.

What is PMI?

When you make a down payment of less than 20%, the lender requires private mortgage insurance, or PMI. The policy protects the lender from losing money if you end up in foreclosure. PMI also is required if you refinance the mortgage with less than 20% equity.

Private mortgage insurance fees vary, depending on the size of the down payment and your credit score, from around 0.3% to about 1.5% of the original loan amount per year. Some years, PMI premiums are tax-deductible and some years they’re not, depending upon the whim of Congress.

*Rate varies according to size of down payment, credit score and insurer.

Source: Bankrate.com, Radian mortgage insurance calculator

Most PMI policies require the borrower to pay monthly. Borrowers also have the option of paying for mortgage insurance with a large upfront payment.

PMI can be canceled

Your lender must automatically cancel PMI when your outstanding loan balance drops to 78% of the home’s original value. This probably will take several years.

You can speed up the cancellation of mortgage insurance by keeping track of your payments. Once the loan balance reaches 80% of the home’s original value, you may ask the lender to discontinue the mortgage insurance premiums.

To put it another way: You can request cancellation of mortgage insurance when the loan-to-value ratio drops to 80%. The lender is required to cancel private mortgage insurance when the loan-to-value ratio drops to 78%.

Loan-to-value ratio

The loan-to-value ratio, or LTV, describes mortgage debt as a percentage of how much the home is worth. It is a financial term used by lenders.

Formula: Mortgage amount owed / Appraised value

Example: Alex owes $60,000 on the mortgage. The house is worth $100,000.

$60,000 mortgage balance / $100,000 = 0.60. This means that Alex’s loan-to-value ratio is 60%.

We’re talking PMI, not FHA

Recent FHA-insured loans require payment of mortgage insurance premiums for the life of the loan. FHA mortgage insurance premiums can’t be canceled. Instead, you have to refinance the loan. Read “7 crucial facts about FHA loans.”


How to Calculate Your Mortgage Payment, mortgage payment formula.#Mortgage #payment #formula


How to Calculate Your Mortgage Payment

Mortgage payment formula

Mortgage payment formula

Understanding your mortgage helps you make better decisions. Instead of just taking whatever you get, it pays to look at the numbers behind any loan – especially a big loan like a home loan.

To calculate a mortgage, you’ll need a few details about the loan. Then, you can do it all by hand or use free online calculators (or a spreadsheet) to crunch the numbers.

Most people only focus on the monthly payment, but there are other important details that you need to pay attention to.

We’ll start with calculating the payment, and we’ll also look at how much you pay in interest ​and how much you actually pay off – in other words, how much of your house you’ll actually own.

The Inputs

To calculate (and understand) the payments, gather the following information about a potential mortgage loan:

  • The loan amount (or principal)
  • The interest rate on the loan (not necessarily the APR, which also includes closing costs)
  • The number of years you have to repay (also known as the term)
  • The type of loan: fixed rate, interest only, etc.
  • The market value of the home
  • Your monthly income

Calculations for Different Loans

The calculation you use will depend on the type of loan you have. Most home loans are fixed-rate loans (for example, standard 30-year or 15-year mortgages).

For those loans, the formula is:

Loan Payment Amount / Discount Factor

You’ll use the following values:

  • Number of Periodic Payments (n) Payments per year times number of years
  • Periodic Interest Rate (i) Annual rate divided by number of payments per
  • Discount Factor (D) <[(1 i) ^n] - 1>/ [i(1 i)^n]

Example: assume you borrow $100,000 at 6% for 30 years to be repaid monthly. What is the monthly payment (P)?

  • D 166.7916 ( <[(1 .005)^360] - 1>/ [.005(1 .005)^360])
  • P A / D 100,000 / 166.7916 599.55

How Much Goes Towards Interest?

Your mortgage payment is important, but you’ll also want to know how much you lose to interest each month. A portion of each monthly payment is your interest cost, and the remainder goes towards paying down your loan (you might also have taxes and insurance included in your monthly payment).

An amortization table can show you – month-by-month – exactly what happens with each payment. You can create an amortization table by hand, or use a free calculator or spreadsheet to do the job for you. Take a look at how much total interest you pay over the life of your loan. With that information, you can decide if you want to save money by:

  • Borrowing less
  • Paying extra each month
  • Finding a lower interest rate
  • Choosing a shorter term loan (15 years instead of 30 years, for example)

Interest Only Loan Payment Calculation Formula

Interest-only loans are much simpler to calculate. For better or worse, you don’t actually pay down the loan with each required payment (although you can usually pay extra each month if you want).

Example: assume you borrow $100,000 at 6% interest-only with monthly payments.

What is the payment (P)?

Loan Payment Amount x (Interest Rate / 12)

Check your math with the Interest Only Calculator.

Your interest only payment is $500, and it will remain the same until:

  1. You make additional payments (which will reduce your loan balance – but your required payment might not change right away), or
  2. After a certain number of years you’re required to start making amortizing payments, or
  3. You make a balloon payment to pay off the loan entirely

Figure Out How Much you Own (Equity)

You might also want to know how much of your home you actually own. Of course, you own the home but until it’s paid off, your lender has a lien on the property so it’s not free-and-clear. The amount that’s yours – your home equity – is the home’s market value minus any outstanding loan balance.

There are several reasons you might want to calculate your equity.

Your loan to value (LTV) ratio is important because lenders look for a minimum ratio before approving loans. If you want to refinance or figure out how big your down payment needs to be, you need to know the LTV ratio.

Your net worth is based on how much of your home you actually own. Having a million dollar home doesn’t do you much good if you owe $999,999 on the property.

You can borrow against your home using second mortgages and home equity lines of credit (HELOCs). But most lenders need to see an LTV below 80% to approve a loan.

Can you Afford the Loan?

Lenders often offer you the largest loan that they’ll approve you for. This is typically based on their standards for an acceptable debt to income ratio. However, you don’t need to take the full amount – and it’s often a good idea to borrow less.

Before you apply for loans, look at your monthly budget and decide how much you’re comfortable spending on a mortgage payment. After you’ve made a decision, start talking to lenders and looking at debt to income ratios. If you do it the other way around, you might start shopping for more expensive homes (and you might even buy one – which will affect your budget and leave you vulnerable to surprises). It’s better to buy less and have some wiggle room than to suffer just to keep up with payments.


Mortgage Payment Calculator –, mortgage calculation formula.#Mortgage #calculation #formula


Mortgage Payment Calculator

Use our mortgage loan calculator to determine the monthly payments for any fixed-rate loan. Just enter the amount and terms, and our mortgage calculator does the rest. Click on “Show Amortization” Table to see how much interest you’ll pay each month and over the lifetime of the loan. The mortgage loan calculator will also show how extra payments can accelerate your payoff and save thousands in interest charges.

Amortization Table

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Whether you’re buying a new home or refinancing, our mortgage calculator can do the math for you. Simply enter the amount, term and interest rate to get your monthly payment amount. If you’re refinancing, enter the current balance on your mortgage into the loan amount section and input the new term and new rate that you’ll receive. Then click on the amortization table to see how much interest you’ll pay over the life of the loan. Add extra payments to find out how they can put your payoff schedule on the fast-track and save you thousands.

Keep in mind that this calculator only calculates the mortgage payment. It does not include taxes, insurance or other fees included in the purchase of your home.

Loan amount: The amount of money you’re borrowing. It’s the cost of your new home minus the down payment if you’re buying or the balance on your existing mortgage if refinancing.

Interest rate: The exact rate you will receive on your loan, not the APR.

Loan term: The length of time you have to pay off your loan (30- and 15-year fixed-rate loans are common terms).

Amortization table: Timetable detailing each monthly payment of a mortgage. Details include the payment, principal paid, interest paid, total interest paid and current balance for each payment period.

Monthly extra payment: Extra amount added to each monthly payment to reduce loan length and interest paid.

Yearly extra payment: Extra amount paid each year to reduce loan length and interest paid.

One-time extra payment: Extra amount added once to reduce loan length and interest paid.

Mortgage calculation formula


CSA Child Maintenance Calculations, mortgage calculation formula.#Mortgage #calculation #formula


How the CSA calculate the amount of maintenance you should pay

From 3rd March 2003 the way that child maintenance was calculated changed. For cases commenced prior to 3rd March 2003 the calculation was dealt with under an algebraic formula. Put very simply it works as follows:-

1. The CSA works out the maintenance requirement. This is the amount of maintenance they want to collect. This amounts to the total amount of income support your ex could receive were she to be in receipt of benefits. Even if your ex is not in receipt of benefits this element of the calculation is always carried out. The maintenance requirement is the cornerstone of the CSA calculation.

2. Calculating the assessable income of your ex. This is done by taking their gross, deducting Tax, NI and half pension.

3. Determining your net income. This is carried out by taking your gross income and deducting Tax, NI and half pension.

4. Calculate the exempt income of your ex. This consists of approximately 50.00 per week for her to live on, set income support allowances for the children and rent or mortgage payments on the home they live in.

5. Determine your exempt income. This is calculated by adding together your mortgage or rent on the property you live in, 50.00 per week for you to live on and income support allowance figures for any children that live with you.

6. Determine your ex’s assessable income. This is done by deducting the exempt income from the net income.

7. Determine your net income. This is done by deducting the exempt income from the net income.

8. Comparing the percentage income your ex and you have between you and calculate a reduction of the maintenance requirement. In reality in most cases the parent with care is in receipt of benefits of Child Tax or Working Tax Credit and therefore they have no income for CSA purposes. Hence therefore this part of the calculation is skipped.

9. You are then deducted a 50p in the against your assessable income until you reach a maintenance requirement figure (or the adjusted maintenance requirement figure if your ex has assessable income herself). Once the maintenance requirement figure is reached the deduction then reduces to 15p in the for one child, 20p in the for two, 25p in the for three until the remainder of your income is utilised or the maximum assessment is reached. The maximum assessment varies on a case by case basis dependant upon the number of children for whom child support is payable and their ages.

10. Work out your protected income. This is a combination of income support allowances you would receive were you in receipt of benefits together with your mortgage interest or rent (note – only mortgage interest is used in this part of the calculation – all mortgage payments are used in determining exempt income). A further 30.00 is then added to the figure and a further tolerance adjustment is applied. If this figure is higher than the maintenance determined above then the protected income figure is ignored. If this figure is lower than the figure determined above then this becomes the assessment subject to the final check.

30% Rule

The 30% rule says that no non-resident parent should pay more than 30% of his net pay by way of child support. Therefore if either of the above two calculations represent more than 30% of the non-resident parents income the amount of maintenance payable is reduced to 30% of his net pay.

Phew, and that is the simplified version. There are a variety of other allowances that can be made (but in most cases do not apply) some elements of income are disregarded (not many) and additional elements of protected income can also be applied. Nonetheless this is the simplest way of describing the system.

It would come as no surprise whatsoever to know that this extremely complex calculation takes a long time to carry out with huge delays and of course being so detailed there is huge scope for error. If you think your assessment is wrong call us on 03456 588683.

New Style Calculation (after 3rd March 2003)

1. Determine your income. This is your gross pay less Tax, NI and all pension scheme contributions.

2. Determine how many children live with you, your net income is then reduced by 15% for one child living with you, 20% for two and 25% for three or more.

3. Apply the basic child support calculation – 15% of net pay (after deduction for any children living with you) for one child, 20% for two and 25% for three or more.

4. Calculate and reduce by any amount of shared care. Shared care is calculated by determining the number of nights for any of the children for whom you are paying child support stays with you. If one of your children stays with you below 52 nights per annum (less than 1 night per week) the amount of child support is unchanged. If the amount of contact is between 52 and 103 nights per annum (1 to 2 nights per week) child support is reduced by one-seventh. If the child stays with you between 104 to 155 nights per annum the amount of child support is reduced by two-sevenths, if the contact amounts between 156 and 174 nights per annum the figure is reduced the three-sevenths. Contact in excess of 175 nights per annum reduces the child support figure by 50% since in effect the child spends as much time with you as with the parent with care. Furthermore in that kind of case an additional 7.00 for each child for whom you are paying child support is deducted provided they qualify by staying with you in excess of 175 nights per annum.

What should be noted here is that the new system does not include any enquiry into parent with cares earnings or indeed (if you have one) your current partners earnings. Furthermore, all children that live with you are taken into account, even if you are not the natural non-resident parent, for instance if they are your stepchildren.

Theoretically in most cases these calculations should be very simple, if you are living on your own you will pay 15% for one child, 20% for two and 25% for three or more. Complications arise where there is shared care, another child living with you or where you have more than one child by more than one ex, most particularly if you see the different children by different mothers for different periods of time qualifying therefore for different elements of shared care.

Child Support Solutions specialises in helping resident and non-resident parents who are having problems with the

Child Support Agency or who need general advice and support relating to issues with the CSA.


Compound Interest Definition and Formula, mortgage calculation formula.#Mortgage #calculation #formula


What Is Compound Interest? Definition and Formula

Mortgage calculation formula

Compound interest is the interest paid on the original principal and on the accumulated past interest.

When you borrow money from a bank, you pay interest. Interest is really a fee charged for borrowing the money, it is a percentage charged on the principal amount for a period of a year — usually.

If you want to know how much interest you will earn on your investment or if you want to know how much you will pay above the cost of the principal amount on a loan or mortgage, you will need to understand how compound interest works.

Compound Interest Example

Think of it like this: If you start out with 100 dollars and you receive 10 dollars as interest at the end of the first period, you would have 110 dollars that you can earn interest on in the second period. So in the second period, you would earn 11 dollars interest. Now for the 3rd period, you have 110 11 121 dollars that you can earn interest on. So at the end of the 3rd period, you will have earned interest on the 121 dollars. The amount would be 12.10. So you now have 121 12.10 132.10 of which you can earn interest. The following formula calculates this in one step, rather then doing the calculation for each compounding period one step at a time.

Compound Interest Formula

Compound interest is calculated based on the principal, interest rate (APR or annual percentage rate), and the time involved:

P is the principal (the initial amount you borrow or deposit)

r is the annual rate of interest (percentage)

n is the number of years the amount is deposited or borrowed for.

A is the amount of money accumulated after n years, including interest.

When the interest is compounded once a year:

However, if you borrow for 5 years the formula will look like:

This formula applies to both money invested and money borrowed.

Frequent Compounding of Interest

What if interest is paid more frequently? It s not much more complicated, except the rate changes. Here are a few examples of the formula:

Compound Interest Table

Confused? It may help to examine a graph of how compound interest works. Say you start with $1000 and a 10% interest rate. If you were paying simple interest, you d pay $1000 10%, which is another $100, for a total of $1100, if you paid at the end of the first year. At the end of 5 years, the total with simple interest would be $1500.

The amount you pay with compound interest depends on how quickly you pay off the loan. It s only $1100 at the end of the first year, but is up to over $1600 at 5 years. If you extend the time of the loan, the amount can grow quickly:


Texas Mortgage Calculator – Texas Mortgage Center, mortgage calculation formula.#Mortgage #calculation #formula


Texas Mortgage Center

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How is a mortgage calculated?

Here s what you need to know in order to calculate your monthly payment on a mortgage without the Texas Mortgage Calculator. First, you need to find out the principal amount. The principal is the amount you are borrowing or the amount that you still owe on a loan. This amount is separate from interest. In addition to the principal you will also need to know the interest rate. These rates can be either fixed, adjustable, or variable depending upon the nature of the loan. A fixed interest rate does not change for the duration of the mortgage. This can be advantageous to the borrower when you anticipate interest rates to increase. An adjustable rate mortgage has a varying interest rate that changes according to a predetermined benchmark. It is common to have a fixed rate for a given period of time. After this period it is common to have rates that vary on a monthly basis. Variable rate mortgages are similar to adjustable rates in that they change based on a given index or underlying benchmark rate. This type of interest rate is advantageous to the borrower if they anticipate that interest rates will decrease over time. You must also know the number of monthly payments you plan to make. We will refer to the monthly payment as M , the principal amount as P , the interest rate as i , and the number of monthly payments as n . Once you have determined this, the monthly payment is calculated with the following formula: M = P[i(1+i)^n]/[(1+i)^n -1]

We offer mortgage loans of all types. Mortgage refinance, consolidate debt, or get a low interest rate loan! We offer the highest quality personal service to each of our clients.

Now that the Texas mortgage calculator has helped you determine your mortgage payment amount, apply today!

When does it make sense to refinance?

Usually people refinance to save money, either by obtaining a lower interest rate or by reducing the term of the loan. Refinancing is also a way to convert an adjustable loan to a fixed loan or to consolidate debts. The decision to refinance can be difficult, since there are several reasons to refinance. However, if you are looking to save money, try this calculation:

a. Calculate the total cost of the refinance

b. Calculate the monthly savings

c. Divide the total cost of the refinance

(#1) by the monthly savings (#2). This is the break even time. If you own the house longer than this, you will save money by refinancing.


3 Ways to Create a Mortgage Calculator With Microsoft Excel, mortgage calculation formula.#Mortgage #calculation #formula


How to Create a Mortgage Calculator With Microsoft Excel

This wikiHow teaches you how to calculate your mortgage-related expenses like interest, monthly payments, and total loan amount using a Microsoft Excel spreadsheet. Once you’ve done this, you can also create a payment schedule that uses your data to generate a monthly payment plan to ensure you pay off your mortgage in time.

Steps Edit

Method One of Two:

Creating a Mortgage Calculator Edit

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Method Two of Two:

Making a Payment Schedule (Amortization) Edit

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula

Mortgage calculation formula


How to Calculate Amortization: 9 Steps (with Pictures), amortization formula.#Amortization #formula


How to Calculate Amortization

Amortization refers to the reduction of a debt over time by paying the same amount each period, usually monthly. With amortization, the payment amount consists of both principal repayment and interest on the debt. Principal is the loan balance that is still outstanding. As more principal is repaid, less interest is due on the principal balance. Over time, the interest portion of each monthly payment declines and the principal repayment portion increases. Amortization is most commonly encountered by the general public when dealing with either mortgage or car loans but (in accounting) it can also refer to the periodic reduction in value of any intangible asset over time.

Steps Edit

Part One of Two:

Calculating First Month’s Interest and Principal Edit

Amortization formula

Amortization formula

Amortization formula

Amortization formula

Amortization formula

Part Two of Two:

Computing Amortization for the Entire Loan’s Term Edit

Amortization formula

Amortization formula

Amortization formula


Loan Amortization, Loan Amortization Templates, amortization formula.#Amortization #formula


Loan Amortization

Amortization formula

Student Loan Calculator

College is a great and enriching experience. Not only did you get to choose to study the things you love, but now you have the opportunity to take your degree and make a

Amortization formula

Loan Calculator Template

Loans are a major decision for any person. You need to consider every aspect that goes along with a loan, especially the interest. The Loan Calculator is a great way for you to

Amortization formula

Commercial Loan Document Checklist

When putting a commercial loan together, it’s best to be prepared before you enter into an agreement. The Commercial Loan Document Checklist is a good way to prepare all of the documentation you

Amortization formula

Amortization Formula Excel

Ask any financial adviser or a financially savvy individual what one of the most critical components for those to keep track of in regards to their financial status, nearly all will include current

Amortization formula

Biweekly Mortgage Payment Amortization

Mortgage holders will want to make sure that they are capable of making payments that will reduce the principal over time. Using the biweekly mortgage payment amortization schedule, consumers can simplify this process .

Amortization formula

Calculation Mortgage Payments

Calculation Mortgage Payments Use our Calculation Mortgage Payments Excel Template to estimate your monthly mortgage payments. Enter the principal, interest rate, loan period, and the start date in this mortgage payment calculator. Download this