Amortization schedule

[Ocean West]

any one have a simple file that creates a simple amortization schedule?

Thanks

[comment]

Script (i.e. actual records) or calc?

[Ocean West]

yes script creates actual records kind of like the excel spread sheet worksheet..

[comment]

I see that JMO has only old pre-7 files; try this one:

AmortizationTableGen.fp7.zip

[Ocean West]

Awesome thanks for the link :

[comment]

:qwery:

Link?

[Ocean West]

er, attachment :

[Ocean West]

Ok thinking thru the actual requirements that I am trying to compute:

the applicant is to only pay interest only during the time they are in school (say 15 months) and the interest for that term is capitalized so it becomes part of the loan amount. (adj balance)

then after graduation the loan is fully amortized from that point thru the remaining payments ( 120 term - 15 ioTerm = 105)

The minimum interest only portion is 1% of the total loan plus original fee, however that is a guideline and the minimum can be manually adjusted for the initial period based on several factors, an adjustment should be reflected in the amortization schedule.

s

[comment]

While they pay interest only, the balance remains the same. When this is over, the "real" loan begins with the original balance and the remaining number of periods.

If they pay less or more than interest only, then the balance needs to be adjusted each month by the difference. The following month you compute the interest on the current principal, and adjust the balance again. Everything else stays the same.

The 1% minimum rule seems rather arbitrary. Take a loan of $100k, with an annual rate of 4% and 120 payments:

• The monthly payment should be $1,012.45.

• Interest only is $333.33 a month.

• The 1% minimum is $1,000.00 - almost the same amount as what the borrower would pay without getting any breaks.

[Ocean West]

Ok i figured out why it wasn't working the field for interest rate was put in as a whole number.

[Ocean West]

What is the traditional rules regarding rounding or truncating, when dealing with amortization schedules?

[comment]

I don't know that there are any standards. I round for display only, and carry over with full precision. I don't think the error can be significant, because the monthly payment is fixed and accurate to the nearest cent. The maximum rounding error here is half a cent, and the maximum gain/loss of a party to a loan at an annual rate of 5%, payable in 120 installments is about $0.78.