mortgage formula

[Ron]

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

 

[Bob Phillips]

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]

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)

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

 

[Bob Phillips]

Are you sure it is 5.6%, not 5.575%.

--

HTH

RP
(remove nothere from the email address if mailing direct)

 

[Ron]

Are you sure it is 5.6%, not 5.575%.

--

HTH

RP
(remove nothere from the email address if mailing direct)

on the letter it says 5.6%
Ron

 

[RWN]

What is the amortization period of the mortgage and the conversion periods (i.e. is the
rate compounded monthly/semi annually...).

 

[Ron]

What is the amortization period of the mortgage and the conversion periods
(i.e. is the
rate compounded monthly/semi annually...).

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

 

[Andy Wiggins]

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

 

[Bernard Liengme]

Are payments at start or end of month?

 

[Route2391]

the formula stands correct you need to add decimal points to it that
all and format the cell property to currency....

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