Function to establish mortgage bond size.

[brianfosterblack]

Can anyone tell me the function in excel to use to establish the mortgage bond size I can get based on the monthly payment I can afford.

I know to use PMT to do it the other way around where I can determine the monthly payment based on a bond value.

 

[joeu2004]

Can anyone tell me the function in excel to use to
establish the mortgage bond size I can get based on
the monthly payment I can afford.
I know to use PMT to do it the other way around where
I can determine the monthly payment based on a bond
value.

Perhaps =PV(monthlyRate,numberOfMonths,-monthlyPayment)

 

[PJ Hooker]

Can anyone tell me the function in excel to use to establish the mortgagebond size I can get based on the monthly payment I can afford.

I know to use PMT to do it the other way around where I can determine themonthly payment based on a bond value.

You can use the PV function as suggested in another reply
Ensure to divide the RATE by 12 and multiply the NPER by 12

As you may know the PV function in Excel assumes interest is
compounded discretely as in per period compounding

There are alternatives to Excel financial functions, for example,
TADXL Excel add-in for finance has the same 5 TVM functions of RATE,
NPER, PMT, PV, & FV that permit selection of compounding of interest
whether it is discrete or continuous