Questions tagged [amortization]

any question related to the amortization of loan. Also refered to as EMI or repayment schedule

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2
votes
1answer
29 views

Mortgage: Floating rate loan tenure extension on rate increase

I am trying to figure out how my bank has implemented re-pricing on my floating rate home loan. The original home loan was for an amount of ₹ 48 lakhs (₹ 4.8 Mn) at an annual rate of interest (RoI) ...
2
votes
4answers
261 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 ...
2
votes
1answer
126 views

Buy 1 bed flat via private sell (Edinburgh, UK) - opportunity?

I am renting a flat (1 bed + box room) with my partner in 'central' Edinburgh. We pay £675 pcm. Our landlady wants to sell it urgently and she asks for £160,000. She is keen to sell it to us. A ...
0
votes
1answer
55 views

Future balance of loan balance [duplicate]

I would like to know if there is a formula that could tell me the future balance of a loan. For example, if I have a loan of 10,000 at 6% for 5 years and I do the amortization it brings that the ...
4
votes
3answers
317 views

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 ...
1
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1answer
81 views

Does the amortizing payment on a loan depend on whether interest is calculated daily or monthly?

Assume two banks offer a $100,000 mortgage at 6% annual interest for 30 years with payments due monthly. One bank assumes each month has 30 days. The other bank uses the actual number of days in ...
1
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1answer
174 views

Formula for previous months interest payment and balance - Reverse Amortization

I am trying to resolve an issue I am having where a system calculated incorrect additional payments on a loan for a couple of months, resulting in the new current balance being incorrect. I want to ...
-1
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1answer
56 views

how to find flat rate of interest per annum and month if we have given reducing rate of interest or loan amount and tenure?

For example: For loan amount 500000 for 5 years at the rate of 12% (reducing interest rate), EMI is 11,122.22 per month Here 12% reducing is equivalent to flat 6.69% per annum or flat 0.55% per month. ...
2
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1answer
37 views

Calculating Interest with Compute Method as Canadian - Semiannual

i'm trying to validate a software Interest Calculation. The defaults given are as followed. Interval: Monthly Nominal Annual Rate: 10% Disbursal Amount: $500,000 Disbursal Date 01/01/2018 Payment ...
4
votes
2answers
265 views

Mortgage principal reduction

For a 30-year mortgage that started less than a year ago, how much will the monthly payment be after making an additional $100,000 payment towards the principal? The mortgage currently has a balance ...
1
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1answer
86 views

How to calculate payment and accrued interest on a mortgage when one payment missed (D30)?

How is the interest and principal payment calculated when mortgage has already missed one payment? Are the new payments calculated off the new balance (non-amortized balance) or the original scheduled ...
1
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1answer
737 views

How to calculate EMI for Quarterly, Half yearly and Annual payments and generate amortization schedule?

I am a software engineer by profession. I am a newbie to finance. I am trying to create a loan amortization schedule. I have the formula for EMI= P*(r*(1+r)^n)/((1+r)^n)-1. How to apply it for ...
1
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1answer
45 views

How to calculate interest on Monthly Effective loans where duration greater than compounding

I have an amortization software and trying to manually calculate the interest accrued it calculated. The Key values are: Compounding: Monthly Nominal Annual Rate: 10% Day Count: 365 Principal: 500,...
2
votes
2answers
242 views

Partially vs. Fully Amortized Loan

Isn't the article beneath wrong to interpret a Fully Amortized Loan as a loan with 7 years maturity? Isn't the correct comparator a Fully Amortized Loan with 30 years maturity, and 30 years ...
2
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1answer
63 views

Disposing of hardware item from current assets, is the reduction in assets posted to equity or special loss account?

I'm disposing of an old laptop that is broken and completely unusable. Let's say it was purchased for $1000 before taxes, already been accounted for in Current Assets since the date of purchase, and ...
1
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1answer
70 views

Calculating Amortization Payment Amount when first payment is early

How can I determine a fixed payment amount for a loan that has an early first payment? Example: Loan Amount: $100 Interest: 10% Loan Date: January 1st, 2018 First Payment Date: January 15th, ...
1
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1answer
132 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 ...
2
votes
2answers
138 views

How can I amortize 4 rates over a 30 year term?

I've been offered a HELOC modification with the following terms: Beginning balance $148,148.59, Initial rate and term is 1% for 60 months at a pmt of $374.60, The 2nd term begins Jan of yr 6, at 2% ...
2
votes
2answers
354 views

What is the math used to calculate the impact that overpaying a mortgage has an an amortization table?

I'm in the classic 'pay extra on the house vs invest' argument with my partner (not the subject of this question) and I'm trying to understand what exactly happens when I pay extra on a mortgage. I ...
3
votes
2answers
1k 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 ...
1
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1answer
136 views

How do equity, amortization, and market value factor into net profit on a sold house?

TL;DR: If I buy my first house at $500k using an FHA loan, and I want to eventually buy a $1MM home (with a conventional 20%-down loan), how do I calculate the time at which the sale of my first ...
1
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2answers
173 views

What's an easy way to create a floating amortization loan? [duplicate]

When dealing with a mortgage company, paying off a loan is quite simple. Now everything is online and most of the times you can pay more than the minimum payment each time. Each month the interest ...
4
votes
1answer
281 views

I own the condo but not the (13 year old) mortgage. What should I do?

This was my mother's home in Florida. She died and left it to me via ladybird deed. It has about $40,000 equity. I have been paying the mortgage out of my bank account for years - since long before ...
1
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1answer
158 views

How to calculate the payments going into interest and principal on a reverse amortization loan?

I'm trying to figure out the relative amount of the payments that are going towards interest and principal each period with a loan in which you pay more towards principal in the beginning and have it ...
0
votes
1answer
831 views

Calculating Interest Accrued for a late payment

I'm trying to calculate the interest accrued on my amortization schedule manually. I can calculate it fine if payments are exactly one month apart but this payment is More than 1 month apart. This ...
0
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2answers
172 views

Calculating Interest Accrued With an Uneven Interval

I'm trying to calculate the interest accrued on my amortization schedule manually. I can calculate it fine if payments are exactly one month apart but this payment is less than 1 month apart. Last ...
0
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2answers
465 views

How to calculate APR for a fixed rate loan due before amortization end date?

I need help with the following question for a homework assignment related to finding the APR for an investment class. Here's the question: Calculate the APR for a $500000 fixed rate loan amortized ...
0
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2answers
117 views

Income statement- amortization and depreciation

I am teaching myself financial modelling and I am looking at income statements. I have come across tutorials that calculate EBITDA through the calculation: Gross profit - SG&A Underneath the ...
3
votes
2answers
1k 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 ...
2
votes
1answer
267 views

Term loan overpayment options: applied to principal, or…?

Twice in my life now (as of yesterday) I've found myself in a very confusion situation after having made higher-than-scheduled payments on a term loan for an extended period of time. The first time, ...
6
votes
4answers
6k views

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 ...
1
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2answers
726 views

Calculate an even payment loan with a irregular first term

How can I determine a fixed payment amount for a loan that has an irregular first term? Loan Amount: 1000. Term 12 months. Interest rate 10% annual. Loan date 9/1. First payment 10/1. Payments are ...
3
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2answers
329 views

Mortgage change of terms (lower rate) increases payment amounts

My bank now offers lower interest rates than what I got when I first started my mortgage. I called to see about changing my terms (lower rate, same payoff date), and they said it would actually ...
2
votes
3answers
968 views

Calculating interest accrued with extended Initial Payment Date

I'm wondering how do I calculate the interest accrued if the intervals aren't perfect. For example Principal - $100,000 Interest - 8% Compounding monthly Disbursal Date - January 1st, 2016 Initial ...
12
votes
1answer
2k views

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?
0
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0answers
949 views

Calculating interest accrued for 30/360

my typical interest calculation is Actual/Actual or Actual/365. I'm curious to how 30/360 should be calculated if the duration is not from beginning of the month to the end of the month. For example ...
4
votes
2answers
2k views

How to recalculate an amortization table after making a large payment?

I have an auto loan I wish to apply a very large amount to. I have a amortization table that shows me details for each payment I make. Here's where it gets complicated... My lender does not allow ...
2
votes
1answer
255 views

Checking the math on a Truth-in-Lending Disclosure

Here is a shot of an actual Truth-in-Lending statement for a real home mortgage (mine). I'm trying to check the numbers but they seem slightly off: It's a 30-year fixed rate mortgage. The annual ...
0
votes
1answer
11k 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 ...
1
vote
1answer
16k views

Does CAPEX include intangible assets?

CAPEX is defined here as funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. The video states that "the value of the capital ...
9
votes
2answers
3k views

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 ...
-4
votes
5answers
950 views

Mortgage vs. Loan?

I understand the math behind how banks calculate the interest to principal ratio throughout the amortization period. I want to know why banks want you to pay as much interest as possible first? In a ...
4
votes
6answers
58k views

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 ...
2
votes
1answer
583 views

Calculating the effect of prepaying your loan

I am asking about the mathematical formula, or constructing the amortized loan table, of the effect of someone prepaying their loan. According to this website, you'd calculate the monthly payment ...
1
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2answers
1k views

Reverse Engineer Loan Payment for amortization

I'm starting to question the Payment amount generated by the software my lender is using, but it could be my calculations that are wrong. I would like confirmation before I proceed. Is my approach (...
2
votes
1answer
153 views

Reporting of amortization expenses to FTB California

I have registered a corporation in Californa. So far, there have only been start up costs and no income. I have lodged a Form 1120 with IRS and amortized the expenses over 60 months. Do I report the ...
4
votes
3answers
7k views

How do I calculate interest on a personal loan with irregular withdrawals and payments?

Several years ago, I loaned money to a family member. They borrowed different amounts at irregular intervals. They are now beginning to repay, so I want to establish exactly how much they owe. I have ...
1
vote
1answer
728 views

Calculating the PV and the Remaining Payments for Loans with Steps

I thought I was able to figure this out, but unfortunately my numbers did not work. If someone would please help with this scenario, then that would be greatly appreciated. Say I'm taking out a $110,...
1
vote
2answers
106 views

Loan Amortization with Insurance

I'm wondering how does you calculate payment amount of the loan amortization schedule if insurance is involved. "Desjardins" insurance on loan is such that for every $1000 outstanding balance, you get ...
1
vote
1answer
2k views

Seasonal Loan Amortization

Hi I can compute a Basic Loan Amortization Schedule, But now I'm trying to Calculate a Seasonal Loan Amortization Schedule . So for example A loan starts at January And Will go on for 3 years, with ...