Computers And Technology | Amortization Plan

Mortgage Amortization Software

Mortgage amortization software functions as a mortgage and loan management tool for those who need to track mortgages and loans as well as generate amortization schedules for planning purposes. It is available in different versions designed for different entities such as finance professionals, individuals, and government agencies.

The software has different tools that allow users to view any number of extra payments made during the loan repayment period and individually override any payment amount. Users can also effect changes in equated monthly installments (EMI) to see the affect of different payment frequencies and interest rates on the overall interest costs and loan retirement time.

It allows users to generate different amortization tables based on different EMI amounts that can be saved and stored for future referrals. It helps in selecting the best available mortgage amortization plan available in the market by comparing loan amounts, interest rates, payment frequency including accelerated payments, interest compounding frequency, and principal/ interest breakdowns along with running totals of interest paid and principal owing. Users can check the effects of changing payment amounts and extra payments that are made weekly, monthly, or yearly during the loan repayment period.

It allows users to print mortgage amortization schedules for the complete repayment period in multiple formats or specify a date range for printing schedules limited to a certain period. Users have the option of specifying a start date for the schedule or use generic time references from any of the numerous day-count conventions enabled by the software. Compounding methods used for generating amortization tables are based on US and Canadian mortgage rules and regulations.

The software is also capable of generating negative amortization schedules and handling different payment types such as normal, interest only, fixed principal plus interest, increment by dollar, and increment by percentage. It is compatible with all versions of windows operating systems and requires a minimum of 45 MB free disk space to function properly.

By: Kristy Annely

Tags: Amortization Software, Finance Professionals, Interest Compounding, Interest Costs, Loan Management, Negative Amortization, Printing Schedules, Software Functions
Posted in Computers And Technology · October 24th, 2008 · Comments (0)

Loan Calculation – Building An Amortization Table in Excel

Knowing how to build an amortization table will give you a good handle on your monthly payment for a loan and how much you will pay in interest over the course of your loan.

I use amortization tables a lot in both business and in my personal life. For business, I usually use it to determine a monthly payment or determine the actual interest rate of a loan. Often, a loan will include a monthly processing fee or a service fee upfront – really just another form of interest, but if you are comparing two loans, you need to know what your true cost of capital is.

In personal use, I use an amortization table to determine what my mortgage interest is for the purposes of calculating my estimated taxes. I also use it for determining what the payment will be on a car loan based on different loan terms, for instance.

Information you need:
Loan amount (example: $200,000) Interest rate (example: 6%) Loan term in months (for this example, we are saying 36 months)
Open Excel, in cell A-1, type ‘Interest.’ In cell B-1, type your annual interest rate. In cell A-2, type ‘Term’, in B-2, type ‘Payment’, in C-2, type ‘Interest’, in D-2, type ‘Principal’, in E-2, type ‘Outstanding’. In cell E-3, type your total loan amount. In cell A-4, type ‘1′. In cell A-5, type ‘=A4+1′. Copy and paste into cells in the A column below A-5 until you get A-39 (or so that the number in the last cell equals the number of months of your loan). In cell B-4, type a reasonable number for your payment, 1,000 for every $100,000 in borrowed money will work fine. In cell C-4, type “=E3*$B$1/12″. In cell D-4, type “=B4-C4″. In cell E-4, type “=E3-D4″. In cell B-5, type “=B4″. Copy cells C-4 through E-4 into cells C-5 through E-5. Copy cells B-5 through E-5, and paste them in every row from row 6 to the row 39. Select cell E-39. Select ‘Goal Seek…” from the Tools menu. In ‘Set cell:’, it should say ‘E39′. In ‘To value:’, type in ‘0′. In ‘By changing cell:’, type ‘B4′. Hit OK.

This will give you the exact payment and monthly interest and principal payments for your loan.

Remember if you change the term of your loan, the places where I have put ‘E39′ will have to be changed to the row where your last term month is.

Here is a sample amortization file. This is a very useful tool because it is simple, but not many people really know how to do this.

By: C. Worrall

Tags: Estimated Taxes, Excel, Loan Amortization, Loan Tables, Loans, Mortgage Interest, Personal Life, Type Interest
Posted in Computers And Technology · November 6th, 2007 · Comments (0)

Amortization Plan

Mortgage Amortization Software

Loan Calculation – Building An Amortization Table in Excel

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