suuprmansd
New Member
- Joined
- May 10, 2009
- Messages
- 5
I would like to compare multiple loans with and without balloon payments.
The common is loan amount $500,000. # compounding periods/yr, and balloon pmt option $100,000.
EX:
<table style="border-collapse: collapse; width: 764pt;" border="0" cellpadding="0" cellspacing="0" width="1014"><col style="width: 127pt;" width="169"> <col style="width: 68pt;" width="90"> <col style="width: 48pt;" span="2" width="64"> <col style="width: 68pt;" width="90"> <col style="width: 48pt;" width="64"> <col style="width: 61pt;" width="81"> <col style="width: 77pt;" span="3" width="102"> <col style="width: 65pt;" width="86"> <tbody><tr style="height: 38.25pt;" height="51"> <td class="xl76" style="height: 38.25pt; width: 127pt;" width="169" height="51">Option#</td> <td class="xl76" style="border-left: medium none; width: 68pt;" width="90">Down Payment</td> <td class="xl76" style="border-left: medium none; width: 48pt;" width="64">Nominal Interest Rate/yr</td> <td class="xl76" style="border-left: medium none; width: 48pt;" width="64">Duration (yrs)</td> <td class="xl77" style="border-left: medium none; width: 68pt;" width="90">Points</td> <td class="xl77" style="border-left: medium none; width: 48pt;" width="64">Fees</td> <td class="xl76" style="border-left: medium none; width: 61pt;" width="81">Loan Value</td> <td class="xl76" style="border-left: medium none; width: 77pt;" width="102">Monthly Payment </td> <td class="xl76" style="border-left: medium none; width: 77pt;" width="102">Actual Amount Borrowed</td> <td class="xl76" style="border-left: medium none; width: 77pt;" width="102">APR</td> <td class="xl76" style="border-left: medium none; width: 65pt;" width="86">Payment with Balloon</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">1</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">15.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">8.00%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">30</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">2</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">450</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 425,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,097.85</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 416,050.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-7.82%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,164.50</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">2</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">18.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">7.95%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">25</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">1.75</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">375</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 410,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,130.14</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 402,450.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-9.97%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,235.45</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">3</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">17.50%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">9.15%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">20</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">2.5</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">295</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 412,500.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,722.87</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 401,892.50 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-12.52%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,868.65</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">4</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">25.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">7.50%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">25</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 375,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-2,754.00</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 375,000.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-10.26%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$2,867.29</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">5</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">20.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">6.95%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">20</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 400,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,071.41</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 400,000.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-13.63%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,263.44</td> </tr> </tbody></table>What throws me off is the "4 compounding periods/yr" and why is the payment more with a $100,000 balloon at the end. Mathematically it doesn't make sense in my mind. Using the PMT function, with the FV being 100,000.
Any help would be appreciated
The common is loan amount $500,000. # compounding periods/yr, and balloon pmt option $100,000.
EX:
<table style="border-collapse: collapse; width: 764pt;" border="0" cellpadding="0" cellspacing="0" width="1014"><col style="width: 127pt;" width="169"> <col style="width: 68pt;" width="90"> <col style="width: 48pt;" span="2" width="64"> <col style="width: 68pt;" width="90"> <col style="width: 48pt;" width="64"> <col style="width: 61pt;" width="81"> <col style="width: 77pt;" span="3" width="102"> <col style="width: 65pt;" width="86"> <tbody><tr style="height: 38.25pt;" height="51"> <td class="xl76" style="height: 38.25pt; width: 127pt;" width="169" height="51">Option#</td> <td class="xl76" style="border-left: medium none; width: 68pt;" width="90">Down Payment</td> <td class="xl76" style="border-left: medium none; width: 48pt;" width="64">Nominal Interest Rate/yr</td> <td class="xl76" style="border-left: medium none; width: 48pt;" width="64">Duration (yrs)</td> <td class="xl77" style="border-left: medium none; width: 68pt;" width="90">Points</td> <td class="xl77" style="border-left: medium none; width: 48pt;" width="64">Fees</td> <td class="xl76" style="border-left: medium none; width: 61pt;" width="81">Loan Value</td> <td class="xl76" style="border-left: medium none; width: 77pt;" width="102">Monthly Payment </td> <td class="xl76" style="border-left: medium none; width: 77pt;" width="102">Actual Amount Borrowed</td> <td class="xl76" style="border-left: medium none; width: 77pt;" width="102">APR</td> <td class="xl76" style="border-left: medium none; width: 65pt;" width="86">Payment with Balloon</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">1</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">15.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">8.00%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">30</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">2</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">450</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 425,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,097.85</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 416,050.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-7.82%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,164.50</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">2</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">18.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">7.95%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">25</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">1.75</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">375</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 410,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,130.14</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 402,450.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-9.97%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,235.45</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">3</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">17.50%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">9.15%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">20</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">2.5</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">295</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 412,500.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,722.87</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 401,892.50 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-12.52%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,868.65</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">4</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">25.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">7.50%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">25</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 375,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-2,754.00</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 375,000.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-10.26%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$2,867.29</td> </tr> <tr style="height: 12.75pt;" height="17"> <td class="xl79" style="border-top: medium none; height: 12.75pt;" align="right" height="17">5</td> <td class="xl80" style="border-top: medium none; border-left: medium none;" align="right">20.00%</td> <td class="xl81" style="border-top: medium none; border-left: medium none;" align="right">6.95%</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">20</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl79" style="border-top: medium none; border-left: medium none;" align="right">0</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 400,000.00 </td> <td class="xl84" style="border-top: medium none; border-left: medium none;" align="right">-3,071.41</td> <td class="xl82" style="border-top: medium none; border-left: medium none;"> 400,000.00 </td> <td class="xl83" style="border-top: medium none; border-left: medium none;">-13.63%</td> <td class="xl85" style="border-top: medium none; border-left: medium none;" align="right">-$3,263.44</td> </tr> </tbody></table>What throws me off is the "4 compounding periods/yr" and why is the payment more with a $100,000 balloon at the end. Mathematically it doesn't make sense in my mind. Using the PMT function, with the FV being 100,000.
Any help would be appreciated
