T
Thomas Kunka
Here is my desire...any assistance in finding a preadsheet to do this would
be greatly appreciated. My offer in return are my ideas listed below.
Many mortgage companies offer "equity accelerator" program in which
automatic deductions are made from your accounts TWICE a month (such as the
1st and 15th) rather than just one payment. The two amounts generally equal
what would have been the monthly payment. The idea is that my making more
payments, that even though the amount per month is the same, the interest
that accumulates is less and thus your home equity is "accelerated" and time
to pay off the loan is reduced.
I need a spreadsheet to calculate a variable accelerated program and compare
that to the monthly schedule that would have been and checking that the
multiple payments per month equal or exceed the monthly payment and any PMI
or Property Tax Escrow.
Where I am going with is and why I say "variable" is that with the magic of
scheduled electonic transfers, one could set up a weekly transfer. In
theory, if TWO payments per monthly period "accelerate" then a WEEKLY
payment would be even better, right?
So, you would have to have your standard amortization table for comparison
and then one where you could input the number of payments per year, amount
of payments and the schedule of those payments, PMI, Tax Escrow, etc.
The problem I am having is that the Loan Amortization template in Excel
isn't all that smart...it calculates the payment amounts for you based on
the initial variables without taking into account payment schedule which is
key to this calculation since it impacts the accrual of interest. The
schedule is also key because depending on how the "transfer days" fall
within given months, the total of payments for the month may exceed or fall
below the total payment the bank expects for that month.
The payment amount itself needs to be able to be set so that you can 'pay
extra' on each payment if needed so that if your monthly payment was $1000
and there were 4 weeks in a month, you could may 4 payments of $275 for a
total of $1100 this acclerates the mortgage further and could prevent
underpayments for certain months.
Despite the concept being in my head, I cannot grasp the calculations around
it. This is not a 'for-profit' or a homework assignment looking to have
someone do for me...I am simply a homeowner with a concept to explore. I am
sure that an Excel guru could figure this out.
thank you...tk ([email protected])
be greatly appreciated. My offer in return are my ideas listed below.
Many mortgage companies offer "equity accelerator" program in which
automatic deductions are made from your accounts TWICE a month (such as the
1st and 15th) rather than just one payment. The two amounts generally equal
what would have been the monthly payment. The idea is that my making more
payments, that even though the amount per month is the same, the interest
that accumulates is less and thus your home equity is "accelerated" and time
to pay off the loan is reduced.
I need a spreadsheet to calculate a variable accelerated program and compare
that to the monthly schedule that would have been and checking that the
multiple payments per month equal or exceed the monthly payment and any PMI
or Property Tax Escrow.
Where I am going with is and why I say "variable" is that with the magic of
scheduled electonic transfers, one could set up a weekly transfer. In
theory, if TWO payments per monthly period "accelerate" then a WEEKLY
payment would be even better, right?
So, you would have to have your standard amortization table for comparison
and then one where you could input the number of payments per year, amount
of payments and the schedule of those payments, PMI, Tax Escrow, etc.
The problem I am having is that the Loan Amortization template in Excel
isn't all that smart...it calculates the payment amounts for you based on
the initial variables without taking into account payment schedule which is
key to this calculation since it impacts the accrual of interest. The
schedule is also key because depending on how the "transfer days" fall
within given months, the total of payments for the month may exceed or fall
below the total payment the bank expects for that month.
The payment amount itself needs to be able to be set so that you can 'pay
extra' on each payment if needed so that if your monthly payment was $1000
and there were 4 weeks in a month, you could may 4 payments of $275 for a
total of $1100 this acclerates the mortgage further and could prevent
underpayments for certain months.
Despite the concept being in my head, I cannot grasp the calculations around
it. This is not a 'for-profit' or a homework assignment looking to have
someone do for me...I am simply a homeowner with a concept to explore. I am
sure that an Excel guru could figure this out.
thank you...tk ([email protected])