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Questions tagged [amortization]

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

2
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1answer
34 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
220 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
vote
1answer
61 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
vote
1answer
83 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
vote
1answer
34 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
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2answers
100 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
56 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
vote
1answer
51 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
119 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
130 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
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2answers
197 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
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2answers
581 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
122 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
101 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
274 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
vote
1answer
123 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
617 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
119 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
286 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
93 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 ...
3
votes
1answer
186 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, ...
5
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3answers
4k 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
533 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
277 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
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3answers
689 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
1k 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
669 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
1k 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
197 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
10k 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
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1answer
13k 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
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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 ...
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votes
5answers
877 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 ...
3
votes
6answers
48k 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
414 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
146 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
6k 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
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1answer
603 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
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2answers
99 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
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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 ...
1
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1answer
2k views

How to calculate amortization table with pro-rated first month

From what I understand, banks prefer to have loan payments due on the 1st of the month. To that end, if you close on a property on, say, the 15th, they will charge you a pro-rated payment to get you ...
34
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7answers
77k views

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 ...
1
vote
1answer
216 views

Calculating payoff date and monthly payment for a school loan?

How can I verify the minimum monthly payment number and how it breaks down into principal vs. interest if all I know is the current balance and interest rate? How can I determine the payoff date of ...
1
vote
1answer
220 views

How to calculate what i need to pay each month in a annuity type of loan?

Good or bad, how do get to the same number as the bank web calculator do with the following data: Money loaned: 2 500 000 Interest: 3.5% Effective interest: 3.6% Fee (each payment): 50 Number of ...
2
votes
2answers
853 views

Chase bank is offering to refinance my mortgage at a lower rate: How much do I save?

Chase sent me a package in the mail telling me about this limited offer to refinance my mortgage. I don't know anything about this so I tried myself to run the numbers and was hoping someone could ...
3
votes
2answers
1k views

How inflation factors into a loan amortization schedule

I've been looking at a lot of loan amortization schedules for mortgages lately and wonder how they relate to real dollars over time with inflation. The calculators I've been using have a calculated ...
10
votes
1answer
6k views

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 ...
10
votes
6answers
5k views

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 ...