Category Archives: diaries Calculators

See How Much Interest You Are Really Paying by Using a Mortgage Interest Calculator

December 28, 2011

When using a mortgage interest calculator you can be able to see exactly how much of the payment goes to interest. You would see that especially in the beginning of your mortgage you are paying mostly interest and paying little capital off the total.

If for example you have an interest rate of 5% you would be paying 5% on the total outstanding amount. this would mean that as your outstanding mortgage gets less you would be paying less interest and more capital each month. this is because your total payment will normally stay constant.

They structured a mortgage in such a way that in the beginning you will pay mostly interest and pay very little off the outstanding amount. Very few people knows this. As time goes on your mortgage gets reduced and you pay less interest and more off the mortgage. The interest part and the capital payment part will add up to give a constant monthly payment.

What this means is that in order to reduce your mortgage fast and pay a lot less interest it is wise to pay as much extra as you can especially in the beginning of your mortgage. By doing that you will be paying a lot less interest to capital and that reduces the mortgage.

When you use a mortgage interest calculator you can be able to see exactly what part of your payment would be interest and what would be capital. this is a very nice tool in order to make wise decisions about how much you are going to pay each month. You will be able to see the total interest you will have to pay. You can also see what part of your payments up to now have been going to interest.

A mortgage calculator could be one of the most vital tools on your way to debt elimination.

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EXCEL Tutorial – How to Construct a Compounding Interest Financial Calculator

October 19, 2011

You can construct an almost infinite variety of calculators right within your MS EXCEL spreadsheet application.

Here is how you can construct your own 10-year compounding interest financial calculator that would help you to see, for example, how much your $100 will grow at x percent of interest a year, on a year by year basis.

1) Launch a clean worksheet in Excel.

2) Reserve the cell A1 for your principal dollar amount. think of this as your deposit in the bank.

3) Reserve the cell B1 for your annual interest rate (entered as a decimal number like 5.6 or 34.8, etc).

4) In cell C1, enter the following formula into the text input bar just above the spreadsheet and then click the green check-box icon to save the formula into cell C1:

=A1 + ((A1/100) * B1)

This formula will take the amount you enter into cell A1, divide it into 100, and then multiply it by the annual interest rate B1, and then add it to the original A1 amount to give you the total COMPOUNDED amount at the end of year one. for example, for $100 of deposit (A1) at 5% a year (B1), the C1 value should be should be $105.

Now here comes the exciting part.

5) Click and select cell C1 so that Excel should display a black rectangle around the cell. When you bring your cursor to the lower right corner of the cell, your cursor should turn into a dark and slim plus sign (+).

6) Click and drag the cell C1 down as many cells as you want along the C column. This automatically copies the formula in C1 to all the other cells – but not perfectly. Now you need to adjust each formula slightly.

If you click on the unadjusted cell C2, you will see the following formula:

7) Change this by replacing all A2s with C1 because you would like to have the C1 amount get compounded, not the amount in A2 (which is empty).

So the correct formula for C2 becomes:

Similarly, the correct formula for C10 becomes:

Now your calculator is ready for testing.

Plug in 100 for A1 and 5 for B1 and you’ll have $162.8 dollars at the end of 10 years.

What if the interest rate went up by one percent to 6%? Change B1 to 6 and you will have $179 dollars at the end of 10 years.

You can easily stretch this calculator to 20 or 30 years by adding the necessary additional rows to column C and adjusting the formula for each cell accordingly, as explained above.

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Commercial Mortgage Refinance – Why?

August 28, 2011

Why perform a commercial mortgage refinance? Out of necessity of course. Most borrowers face a ballooning loan that forces them to investigate options, spend thousands on third party reports and put in many hours into the process.

As borrowers begin the process of researching they are often pleasantly surprised by the additional loan programs that have become available in the last 5 years. 30 year fixed loan programs, no cost (no 3rd party report costs) commercial refinance programs, non SBA 90% financing, etc replace the traditional 5 year balloon/20 year amortizations programs that have been the main stream for years.

Commercial cash out refinances are a common option that many borrowers elect. Whether the borrower wants to simply pay themselves back for the third party fees or max out the allowable cash out proceeds by the lender, the choice is often left to the borrower. Depending on the amortization period and existing rate the borrower can often pull cash out and still have a similar monthly payment.

Lowering one’s interest rate is an obvious desire and benefit of refinancing a commercial mortgage. This can result in saving hundreds of thousands of dollars over the life of a loan. however, when a borrower faces a ballooning loan or adjusting rate this is not always the case. the overall market dictates most of the borrower’s rate options and it’s up to the borrower to find the best loan program for them.

Third Party Reports- Costs

The costs to perform a commercial mortgage refinance are high. Appraisal’s normally run between $2,000 – $5,000; title is often between $800 – $2,000; environmental reports are around $2,000 (phase one); lender processing fees cost app. $1,000.

It’s to the borrowers benefit to do a simple break even analysis to compare these costs to multiple lenders and to their existing bank if they are offering to reset the loan. often the borrower finds that the third party costs are lower with their existing bank, but the overall costs are less with another capital source than is competing hard to win the borrower over.

First of all, the process to close a commercial mortgage refinance is universally underestimated by banks, lenders and brokers. Your typical loan takes 75 – 90 days to close, not 45 days. in addition, there’s a common communication error that frustrates all involved. for industry insiders they argue (correctly) that the loan process does not begin until a commitment letter is signed and fees for third party reports are paid. from the borrowers perspective the process normally begins when they make a mental decision to go with a particular bank – whether or not the bank has received all the information they need to make a first round lending decision. This communication error results in a further time lag that often creates frustration for the borrower and everyone else involved as tension can become high.

Waiting on the completion of the third party reports (appraisal, environmental, engineering, title) take a large portion of the time to underwrite and close a commercial mortgage refinance. it is not uncommon for an appraisal to take 8 weeks to complete. in addition, many traditional funding sources will wait for one report to be completed before they will order the next; rather than doing all of the 3rd party reports simultaneously.

Borrowers can also add a tremendous amount of time to the process as well. Waiting on the completion of missing documentation (example, uncompleted tax returns) is a common issue. Furthermore, if the borrower becomes annoyed with seemingly unimportant requested documentation and puts off completing, the results is just additional time added onto the process as lenders rarely back down from requested information.

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Payment Amortization Calculator – The Facts

August 24, 2011

A payment amortization calculator is something that people will use in order to determine what the periodic payment will be on a loan and in most cases a mortgage loan. this calculation is based on the amortization process and will factor in various different figures such as the interest and principal payments to be made on every repayment even though the total amount of each repayment is the same.

Also this particular calculator is able to help you create a complete payment schedule for the life of the loan and provide you with information relating to the principal and interest that will need to be paid on a monthly or yearly basis.

Luckily for you there are plenty of online payment amortization calculators available which will help you weigh up the various different options you have with regard to loans and will be able to provide you with payment details accordingly. In order to get a correct figure you will need to input the mortgage loan amount, the interest rate as well as how long you want the term of the mortgage loan to be for. Once this information has been input then the payment amortization calculator will then provide you with a table which tells you how much of the loan is getting paid off and it will help you to understand just how you are paying the mortgage loan off. as you will soon see that in the table provided by the payment amortization calculator the monthly payments will change over the life of the loan. In the beginning most of the money that you pay in order to repay the loan goes towards covering the interest payments and then as time elapses more of the money will then go into paying off the principal part of the loan (the actual loan amount that you originally took out) and a much smaller part of any payment then covers the interest costs.

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About Loan Calculators

August 21, 2011

This is an integral financial calculator that helps you to accurately calculate all types of loans. You can calculate many other loans that you take. A calculator can help you understand the loan amount payable along with interest rates and any other factor that determines the total loan amount. You can rearrange your finances and address your financial troubles easily. when you have loans and mortgages to pay off, you need to organize your finance, perform a proper set of calculations, so that you can understand where your money is being utilized.

A calculator is largely helpful to deal with creditors and lenders. If you don’t remain informed of the specific calculations, you may be deceived into paying more than the actual amount. Also, you could lose track of current interest rate, amount payable etc. You can use two kinds of calculators, online and physical.

Online Loan Calculators

People usually use them as it’s easier and much simpler than physical calculators. Different sites offer different sorts of calculators, along with their own basic to detailed information input. these sites offer calculators based on interest rates, that are usually also displayed on their sites. the calculations could be simple input of loan payment amount, interest rate and loan term. Complex and detailed information would be property tax, type of loan (fixed or adjustable rate), financial strength of borrower, interest rate according to state and so on.

Types of Loan Calculator

There are three major types. each is briefly described below.

This is probably the most sought after loan calculator. This is critical for borrowers as this is a loan scheme that involves a considerable amount of extra charges and extra rates, inflicted upon borrowers by creditors. If you are not aware of the car calculation, you might have to pay more than is required, or could also be cheated.

This is a simple calculator that helps you determine basic home loan repayments. For a better detailed version, you should use a mortgage calculator, as it also includes fixed or adjustable mortgage loan.

Personal Loan Calculator

With a this, you can keep track of the loans you took over buying any gadget, any device or any other product for personal use. usually, people buy this stuff with credit cards, but there are also some who take cash personal loans.

Whatever loan you take, it is necessary that you keep track of it and understand the cash flows and the total payments that you have to make.

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Where can I get a less expensive version of the KRMA jade leather jacket?

August 20, 2011

It is a 3/4 sleeve motocross style leather jacket. It is the same one Elena Gilbert wears on the TV show the Vampire Diaries.

While I can't promise anything, I suggest going to check out sites like gilt and ruelala. They have new daily designer sales so there is a good chance that if you check daily you will run across a similar jacket. also see estylesonline.com as they offer links and daily sales info to many sites similar to these

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Question about commercial property?

August 20, 2011

I am 19 and I am currently looking at commercial property for sale around my area. They are asking $18000 for it and I was going to offer $15000. my first question is how could I get a loan for $20000 dollars? (an extra 5000 to get me started on remodeling the property) I have some credit but very little. Is it possible to get a loan like this without a co-signer? Another question I have is what would the mortgage payments be like on a 30 yr mortgage? I used one of those mortgage calculators, but I don't know how accurate they are. Also, since the property is considered commercial, I was wondering how much it would cost to insure the property? my intentions are to live upstairs and rent out the downstairs to a local business. I was also considering turning a 800 sq ft garage into an apartment. but my biggest question is whether or not I would have to pay for commercial property insurance since I have no intentions of having a business myself.

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Help!… at least response to first paragraph?? – how do you know? – home loan refinance…?

August 18, 2011

Hi, would really love any advice!!! My BASIC 2 QUESTIONs (first one being most important) are (any answer to these questions will be just awesome as they are, if you don't have time to read the rest, including ''more details'' to each below):

Q1(the most important(). how does one REALLY go about knowing which institution / bank will loan to you, and to what amount, BEFORE you actually put in a direct/formal application to them??

Q2. any particular insitutions / banks people might suggest that are more flexible for people with good capacity to pay but who don't fit the ''permanent job and white picket fence'' mould? OR where else might I seek info about which institutions????

MORE DETAILS:

Against Q1: – To me it seems backwards to have to consider such a thing. But, while every bank has online calculators to tell you your borrowing capacity etc, they're all very basic – though the bank certainly considers these factors, their online calculators don't take into account either the loan-to-value ratio of the mortgaged property, or employment factors. And since (very ridiculously) any loan rejections get listed on your credit file, and then themselves become a negative factor in subsequent applications, I'm obviously super keen to avoid bothering to apply with anyone who's just going to reject me. plus, if you try (as I have already) to phone institutions and speak to their phone consultants, at best you get very vague answers…ie. they don't really know. So they essentially try to push you into just applying…and you're back to the potential rejection problem! as already mentioned

Against question 2:
By income and property value themselves I'm a go for any institution…..BUT I don't fit the picket fence style of borrower. I have steadily maintained my current mortgage for 5 years, and have maintained my work type and income (when I need to / choose to) for 8 years at high/increasing levels well within paying capacity. in addition, the property in question is itself is right in the city, and so at least fairly well protected from market price fluctuations – adding to the bank's security.
The bit that makes me not exactly picket fence is that during that same last 5 years of my current mortgage I have had a 2 year well-paid contract on overseas assignment, 4 months off while travelling, various well paid other contract roles which were each in the same type of work but were each less than 6 months duration, and 5 months overseas teaching english and volunteering as a lifestyle choice……yes, I've mixed it up. But again, I have covered my mortgage for ALL of it, and my income, when I work in my ''usual field'', has kept increasing. Still, apparently some institutions don't want me just because I'm not ''stable'' enough….(To which I can only say – (1) I've still had the money to pay and (2) the combination of my funds plus my lifestyle have been good in that time precisely BECAUSE I mixed it up and changed jobs etc!!)

Now…it may be in the end that ''the computer'' at any financing institution can only accept 3 variables, and it may be the computer will say no based on those 3 variables. And if that's so, no matter how I disagree, I guess there won't be much I can do about it. But I at least want to have enough info that isn't coming just from the banks (prefer it from other people like you!!), to know that I've done all I could…

Thanks so much for any advice. A

This is a really complicated one, you should contact a specialist mortgage broker in Australia. there is one called the Home Loan Experts who are in Australia specialising in lending to contractors and non-residents (people living or working overseas). one thing is for sure though, you should not put in applications without knowing if they will be approved or not, otherwise you will damage your credit score by having excessive enquiries.

The Australian banks aren't particularly flexible with employment unfortunately. the modern day workplace has changed and lots of people enjoy a flexible work / lifestyle balance and have no issues earning as much as they want to. the banks just don't get it!

Good luck buddy!

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Calculating payments and Return on Investment?

August 15, 2011

8. You borrowed $250,000 which is paid out over 20 years. the annual rate is compounded weekly but you make monthly payments. the initial cost of the home was $300,000 and you sell it 9 years later for $400,000.

A. )Calc your payment given that the interest rate of the loan is 6% (you have to calc the monthly effective rate first)

B.) If you sold the home after 9 years, how much money do you still owe the bank?

C.) What’s your total return on investment after 9 years and what is the annual realized return?
For a Finance class at U of Miami, the prof does not teach or give us steps on how to reach the answer neither does the book! Thank You

Here you can get the best training course how to make money online and make a realistic $900 to $6000 each month.
Hope it helps

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AMT and Mortgage Interest Deduction?

July 15, 2011

Does the AMT reduce your ability to claim the Mortgage Interest Deduction for a second home? if so, at what income level does it start, and how does it increase as income level increases? any information and web links leading to useful AMT and mortgage calculators are greatly appreciated.

Your answer is buried in the worksheet on page 2 of the 6251 instructions.

A second home is a "qualified mortgage" unless this is interest on a refi where the money was used for something else (car, credit, tuition, rental property, etc).

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