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#1
August 21st, 2005, 08:14 PM
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mortgage formula
Hi, is this the correct formula to calculate mortgage interest on an
interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron 
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#2
August 21st, 2005, 08:21 PM
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You don't need the sum, and you don't need to multiply by -1, and assuming
that the interest is calculated annually, then =-(B3*B4)/12 -- HTH RP (remove nothere from the email address if mailing direct) "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron
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#3
August 21st, 2005, 08:34 PM
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"Bob Phillips" wrote in message ... You don't need the sum, and you don't need to multiply by -1, and assuming that the interest is calculated annually, then =-(B3*B4)/12 -- HTH RP (remove nothere from the email address if mailing direct) "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron Hi thanks for the quick reply however I have just had a notice from my mortgage company, as the interest rate is decreasing and their calculations for a mortgage of £45397.72 and an interest rate of 5.6%, gives a monthly payment of £210.91, whereas my formula gives £211.83. They must use a different formula. As there is a shortfall in my endowment I was trying to find out the difference in paying money into my mortgage account as against using an ISA to make up the shortfall. Ron
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#4
August 21st, 2005, 10:04 PM
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Are you sure it is 5.6%, not 5.575%.
-- HTH RP (remove nothere from the email address if mailing direct) "Ron" wrote in message ... "Bob Phillips" wrote in message ... You don't need the sum, and you don't need to multiply by -1, and assuming that the interest is calculated annually, then =-(B3*B4)/12 -- HTH RP (remove nothere from the email address if mailing direct) "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron Hi thanks for the quick reply however I have just had a notice from my mortgage company, as the interest rate is decreasing and their calculations for a mortgage of £45397.72 and an interest rate of 5.6%, gives a monthly payment of £210.91, whereas my formula gives £211.83. They must use a different formula. As there is a shortfall in my endowment I was trying to find out the difference in paying money into my mortgage account as against using an ISA to make up the shortfall. Ron
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#5
August 22nd, 2005, 01:42 AM
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"Bob Phillips" wrote in message ... Are you sure it is 5.6%, not 5.575%. -- HTH RP (remove nothere from the email address if mailing direct) "Ron" wrote in message ... "Bob Phillips" wrote in message ... You don't need the sum, and you don't need to multiply by -1, and assuming that the interest is calculated annually, then =-(B3*B4)/12 -- HTH RP (remove nothere from the email address if mailing direct) "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron Hi thanks for the quick reply however I have just had a notice from my mortgage company, as the interest rate is decreasing and their calculations for a mortgage of £45397.72 and an interest rate of 5.6%, gives a monthly payment of £210.91, whereas my formula gives £211.83. They must use a different formula. As there is a shortfall in my endowment I was trying to find out the difference in paying money into my mortgage account as against using an ISA to make up the shortfall. Ron on the letter it says 5.6% Ron
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#6
August 22nd, 2005, 06:21 AM
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What is the amortization period of the mortgage and the conversion periods (i.e. is the
rate compounded monthly/semi annually...). -- Regards; Rob ------------------------------------------------------------------------ "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron
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#7
August 22nd, 2005, 09:52 AM
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"RWN" wrote in message ... What is the amortization period of the mortgage and the conversion periods (i.e. is the rate compounded monthly/semi annually...). -- Regards; Rob ------------------------------------------------------------------------ "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron Does it matter what the amortization period of the mortgage is on an interest only mortgage? It has about 6 years left until the first endowment is paid. The interest is calculated daily. I wondered why the mortgage company had a different monthly payment from me. As I said in an earlier post they must use a different formula. Ron
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#8
August 22nd, 2005, 10:02 AM
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I'd go with Bob's suggestion that the rate is probably 5.575%. On your
document, I would think they've used 5.6% as a convenience. As the actual rate used seems to be lower, you're not losing :-) -- Andy Wiggins FCCA www.BygSoftware.com Excel, Access and VBA Consultancy - "Ron" wrote in message ... "RWN" wrote in message ... What is the amortization period of the mortgage and the conversion periods (i.e. is the rate compounded monthly/semi annually...). -- Regards; Rob ------------------------------------------------------------------------ "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron Does it matter what the amortization period of the mortgage is on an interest only mortgage? It has about 6 years left until the first endowment is paid. The interest is calculated daily. I wondered why the mortgage company had a different monthly payment from me. As I said in an earlier post they must use a different formula. Ron
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#9
August 22nd, 2005, 06:00 PM
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Are payments at start or end of month?
-- Bernard V Liengme www.stfx.ca/people/bliengme remove caps from email "Ron" wrote in message ... Hi, is this the correct formula to calculate mortgage interest on an interest only mortgage? =SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest rate. Thanks Ron
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#10
August 30th, 2005, 01:55 AM
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the formula stands correct you need to add decimal points to it thats all and format the cell property to currency.... I got a lot of my begginer help on this site... cool they teach you by making a, time sheet, Invoice and cheek book from scratch on Windows media Player very cool www.MDOTutorials.com -- Route2391 ------------------------------------------------------------------------ Route2391's Profile: http://www.excelforum.com/member.php...o&userid=26774 View this thread: http://www.excelforum.com/showthread...hreadid=397612
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