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charmer

Working Out Mortgage Payments

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Following on from Billy Shear's post on borrowing costs, an easier way to do the claculations. A bit geeky, but quite handy if you want to play with the numbers - spot of variance analysis anyone? Also it looks like your working, not browsing the web!

enter

=pmt

enter the rate,

enter the number of periods,

enter the value of the loan

And voila - you have your payments. To make it monthly, multiply the periods by 12 and divide the rate by 12.

Enjoy

Charmer

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Unfortunately for the "Interest Slaves" in the real world this relies on constant IRs. Oops.

It also explains it's a LOAN. Yes "Interest Slaves" it's a LOAN, you don't actually OWN anything other

than a massive DEBT on an overpriced asset.

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I had to use my brain to work that out, interestingly I came up with the power method and decided that was more accurate.

If you would like to see it in action it is in my mortgage v renting calculator.

In the "Why It Is Better To Buy Now Than Rent" thread.

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[nerd]

Also experiment with:

CUMIPMT()

CUMPRINC()

which are very useful functions if you wish to develop a multi-period model that factor in rate changes and overpayments or offsets.

If the aim is to minimise the interest you pay over the loan's life, splitting out the interest from the principal is an excellent way of seeing the effect on the amortisation curve of rate changes and overpayments.

Some might be surprised at the benefits of overpaying early in the loan life, to others this is obvious.

[/nerd]

JY

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Warwickshire Lad,

Whatever happened to your rubbish website for first time buyers www.firstimebuyershelp.co.uk. That website no longer seems to exist anymore. Isn't it just a sign that you have lost the argument and accept that the property bulls have won and you have lost?

If you have decided to give up on your website, why is it then that you continue to post your usual pathetic drivel on this forum?

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Warwickshire Lad,

Whatever happened to your rubbish website for first time buyers www.firstimebuyershelp.co.uk. That website no longer seems to exist anymore. Isn't it just a sign that you have lost the argument and accept that the property bulls have won and you have lost?

If you have decided to give up on your website, why is it then that you continue to post your usual pathetic drivel on this forum?

It's raining again today Bruno- don't forget to take your umbrella out of your @rse.

http://homepages.tesco.net/bruno.powroznik/author2.htm

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It's raining again today Bruno- don't forget to take your umbrella out of your @rse.

I think it's so far up it's come out of the top of his head

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If you have decided to give up on your website, why is it then that you continue to post your usual pathetic drivel on this forum?

You are now on my Ignore list, you sad individual.

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Warwickshire Lad,

Whatever happened to your rubbish website for first time buyers www.firstimebuyershelp.co.uk.

You can talk, you website looks like i was developed by a colour blind retard.

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You can talk, you website looks like i was developed by a colour blind retard.

has anyone here read 'Liar's Poker'. It's not always a good idea to repay loans early...

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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