# Tag Info

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See above. A 30yr mtg with interest rate X% paid off in 15 yrs will be equivalent to having taken out a 30 year loan on the same date at lower than X% and very close to the rate of what a 15-yr loan would have been on that same date. Difference is so marginal as to not merit consideration, but provides much risk avoidance. Do I care that I paid 3.875% for 15 ...

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You are ALL missing the point. He is looking for the "equivalent"rate AFTER paying off the loan early. That is, on a 30 year loan at x% taken to term, I paid x%. That is not debatable. If I pay off the loan in 20 years, it is the "equivalent" of having taken out the loan ORIGINALLY at a much lower rate of .8x% or what have you. If I ...

1

Starting with the formula for the present value of an ordinary annuity: the rearrangement is straightforward. Unfortunately, this site does not welcome the input of mathematical formulas, so by verbal description Divide both sides by C Multiply both sides by i Subtract 1 from both sides Change the sign of both sides Take logarithms of both sides Divide ...

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In excel use the nper() formula: Description Returns the number of periods for an investment based on periodic, constant payments and a constant interest rate. Syntax NPER(rate,pmt,pv,[fv],[type]) For a more complete description of the arguments in NPER and for more information about annuity functions, see PV. The NPER function syntax has the following ...

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