loan calculations

[anon125]

How do i post an xls file?
thanks

 

[alansidman]

You cannot post a file to this site. You will have to 1) explain in sufficient detail your issue or 2) post a workbook to a third part site such as dropbox or box.net. If you do the latter, make sure that you explain in sufficient detail your issue on this site.

 

[anon125]

thanks
The idea is to borrow from our house and only pay the interest.
is this calculation correct? it is 1666 a month at 5%
c3=+(B3*rate%)/12 where B3 is the amount borrowed each month

[/IMG]

 

[anon125]

https://www.4shared.com/office/2-D0f13Jee/home_equity_loans.html
here is the xls checked by AVG antivirus. simple no macros
thanks

 

[joeu2004]

here is the xls checked by AVG antivirus. simple no macros

Please choose a more reliable (easier to use?) file-sharing website. When I clicked on the URL, first I got all sorts of antivirus warnings, which might be bogus. Ignoring those, I eventually clicked on Download, only to be put into a loop of download pages, perhaps because I disallowed "notifications" from the website.

Here are a couple trustworthy file-sharing websites: drive.google.com; and box.net/files. As always, test the download URL that you post by logging out of the file-sharing website, then entering the URL into a browser address field.

 

[joeu2004]

Please choose a more reliable (easier to use?) file-sharing website.

But if the Excel file has nothing more than the image that you posted, we really do not need it. The image and your explanation are sufficient to understand what you calculated and how.

 

[anon125]

thanks the file, as you rightly guessed, has nothing more in it.

also thanks for the update on that site. used to be good, now it must have been taken over

 

[joeu2004]

The idea is to borrow from our house and only pay the interest.
is this calculation correct? it is 1666 a month at 5%
c3=+(B3*rate%)/12 where B3 is the amount borrowed each month

If you are describing a HELOC, yes, your "amortization" schedule is correct.

But the formula can be written more simply, namely: =B3*$C$2%/12 . Note: "=" instead of "=+"; and the elimination of needless parentheses. Also, note that we use $C$2 to reference the rate in C2. The absolute reference ($C$2 instead of C2) "locks in" the reference to C2 when the formula is copied.

-----

But if you are decribing a reverse mortgage, you normally do not repay the interest (and principal) until the contract is terminated; typically, when the owner dies or sells the house.

In that case, your "amortization" schedule is incorrect.

So the question is: which type of loan are you dealing with: HELOC, reverse mortgage, or something else altogether?

If you clarify in a response, it might be helpful if you provided all of the terms of the loan. For example, "principal limit" of $180,130 (home value as determined within limits by the lender); term of 144 payments and frequency (monthly, as you explained); annual rate (5%, as you explained) or , better, the periodic rate (5%/12, as you implied), which is not always the annual rate divided by 12; any predetermined payment (like $1666, as you explained).

-----

Aside.... Please, please, please do not write percentages as decimal numbers without "%"; in other words, 1.23 to be interpreted as 1.23%. Simply enter the actual percentage number with "%" (i.e. 1.23%). Then, your formula is simply =B3*$C$2/12 -- no "%" in the formula.

Why not write percentages as decimal numbers without "%"? First, it is confusing: does 5 represent 5% or 500%? Second, it is error-prone: some place, you will forget to append "%" in the cell reference; in other words, you will write C2 instead of C2%.

 

[anon125]

Thanks for the simplication of the formul.
it is NOT a reverse mortgage.
we can take out up to 80% of the value of the house!