Questions tagged [amortization]

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

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38
votes
7answers
93k 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
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 ...
2
votes
3answers
1k 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 ...
7
votes
4answers
7k views

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 ...
10
votes
6answers
6k 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 ...
6
votes
4answers
7k 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 ...
0
votes
1answer
231 views

Paying USD 1000 towards the principal on my mortgage

I bought a home worth 200,000 paid 20% down, my interest rate is 4%, 30 yr fixed Remaining Loan 160,000. Initially, lets say I pay around 1000 USD (200 toward my principal and 800 towards my interest)....
1
vote
1answer
140 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 ...
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 ...
10
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 ...
2
votes
2answers
147 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% ...
0
votes
2answers
191 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 ...