Topic: Good Mortgage Calculator

[wing]

Anyone have a link they kept around to a good mortgage calculator?

What I want to do is fairly simple and maybe it's more simple than I think.

Let's say you have a mortgage -- pick  a number $300k at 3%  put a lump sum payment on the mortgage, say $10k

So if one were to calculate the new amortization and cost of borrowing, is it really as simple as just punching in 290k into the calculator?  Most calculators though will change your payments.

I want to put in my current payment, my current mortgage amount and current interest rate and current amortization etc.

THEN find out how the interest and amortization changes with the down payment but never changing anything else.  Every other calculator I find seems to change everything.

[UmroAyyar]

Try this.

http://www.bankrate.com/can/mortgage-calculator.asp

[wing]

Thanks that isn't too bad and sadly not the numbers I was expecting

[Triple Bob]

Set up a spreadsheet with this formula, it will give you a ballpark figure:

=(House Price-Down Payment)*(Interest Rate/12)/(1-((1+(Interest Rate/12)^-(Length in Months))

so for your numbers (assuming 25 years):

(300,000-10,000)*0.25%/(1-(1.0025^-300)) = $1375 per month

or $635 Bi Weekly.

If you need to add any mortgage insurance you add the amount onto the first bit, the total being borrowed.

Then Goal Seek away!
 

[wing]

Thanks Bob

[Ex-airbalancer]

House is paid off, so I dont care about no mortgage calculator

[wing]

Lucky you!  I was within 7 years then I bought a bigger house, no I'm 24 years if I keep to the schedule and the rates don't rise too much or I'm hoping 8-12 years (I think that's the fastest I can do it) again assume rates don't rise too much by putting large sums down yearly.

Of course this all based on my current income schedule.  It would be pretty sweet if I could pay it off in 8 years from now both last year and this year make it feasible but 8 years is a long time and things could change.... actually come to think of it, if I didn't buy a truck and trailer and supercharger this year I could knock it down to 6 or 7 years

[Ex-airbalancer]

WE did get lucky that we did not by a larger house in the late '80s when the price rocketed up.
At one time 5 year mortgage under 11% was a good rate
The quicker you can pay it off the better off you are
I guess with a good mortgage calculator see how much interest you are paying weekly  helps you pay it off sooner

[wing]

$18,000 interest a year 

[Wetson]

Accelerated bi-weekly payments on a variable rate mortgage is the way to go and the quickest method of paying off your mortgage with the least amount of expense incurred.  Also take advantage of the allowable lump sum and double up payments that your lender allows (Even if you can only pay $1000 for the lump sum).  That money goes directly to principle which means less interest incurred in the long run. 

[barrie1]

Starting this week the Bank of Montreal has a 5 year rate of 4.9%. Its good for 90 days they have told me. I am up for renewal on mine in 3 months and my current lender wants 6.1/4. Bank of Nova Scotia no less. I will offer them a chance to match or hit the road. Anybody know of anything cheaper would be helpful. 

[wing]

Variable?  I'm at 3% right now.

[ovr50]

If you are over 60 years of age, and still carrying a mortgage, you may have financial problems coming....people this age should be mortgage-free and actually have money in the bank (hopefully not the stock market now).

Course the world is not a perfect place...

[dr_spock]

Is it bad to have a mortgage on your rental properties at 60 if you're making money off your tenants?

[Ex-airbalancer]

Is it bad to have a mortgage on your rental properties at 60 if you're making money off your tenants?

no

[ovr50]

Is it bad to have a mortgage on your rental properties at 60 if you're making money off your tenants?

No, that's different. Of course, you need to keep the place rented but that usually isn't too great a problem assuming the property is in good rentable condition, and the rent is priced to market.

I'm talking about carrying a mortgage on your principal residence once one is over 60. It is usually not a great idea for most ppl.

[CyberNick]

This drove me bananas when I was calculating my mortgage... My figures were always different in excel then they were when using any of the Canadian banks mortgage calculators on-line. Mine were the same as the calculations from American banks.

Then I found this:

By law in Canada, the interest rate on mortgages is understood to be compounded semiannually.  Because in practice consumers usually pay back their mortgages monthly and are charged monthly interest, they get a break on the monthly interest rate.  In fact, the rate used to determine monthly interest in mortgage amortization tables is slightly less than the annual rate divided by 12.

I found this on an economics lesson on-line somewhere. I don't have the link any more but in my excel file, the monthly interest is calculated as follows:

Code: [Select]

((1+AnualRatePercent/2)^(2/12))-1

Now my mortgage calculations match the on-line tools provided by the Canadian banks.

[ArticSteve]

Is it bad to have a mortgage on your rental properties at 60 if you're making money off your tenants?

If they're rentals properties above and beyond your personal residence age has no consequence.  They are a business and the interest paid on the mortgage is tax deductible.  As long as the rents are covering the mortgage, taxes, upkeep and your "salary" for management your smiling.

[wing]

I found a REALLY good calculator.

 I called my banker

No B.S. she punched in the numbers and gave me the result.  I was close on my calculations with my rough estimates anyways.  Interest rates are so low, I'm only paying 3.375% right now, as a result, a down payment right now is not financially a good move, I'd be better to drop it in a GIC or something.

[initial_D]

$18,000 interest a year 

Almost enuff to buy a Cobalt.

Buying another property, Wing?