Linda asks…
Where can I find the formula & lookup table for a reverse mortgage? I want to build/code a reverse mtg calc.?
I find plenty of calculators, but I want to actually build my own so I can make it fancy with sliders to balance between lump-sum payout and monthly payments and equity line. Anyone know? Thanks much!
admin answers:
Tables are worth LESS for this purpose than not having a clue. If formula is EXACTLY the same as for ANY loan. If you can’t figure out how to apply it without our help, you are not qualified to build the calculator you propose.
Chris asks…
without using a mortgage calc. but with a regular calc. how do u calc arm rates?
FOR INSTANCE DO I TAKE THE AMOUNT OF THE LOAN (150,000)AND DIVIDE BY THE INTEREST SAY 6%. AND THEN MULTIPLY BY THE TERM OF THE LOAN SAY 30 YEARS. iS THAT THE WAY TO DO IT WITHOUT USING A MORGAGE CACULATORAND HAVING TO USE A REAL ONE?
admin answers:
You can’t unless you have a lot of time on your hands. The reason a mortgage calculator, or financial calculator, were created is that the money needs to be itteratively multiplied by each interest period as it is moved through the months. So asking what is a $500 monthly payment one year from now worth assuming 6% interest, is not simply taking 12×500. You have to calculate the interest for each month. This simple problem takes 12 multiplications and additions all in a row. It just aint worth it. Mortgages are a lot longer than a year and will take forever to do.
Use an online calculator:
http://www.loansquick.com/ARMvsFixedRateCalc
Ken asks…
How accurate are online mortgage calculators?
How accurate are those online mortgage calculators like this one: http://www.mortgage-calc.com/mortgage/simple_results.html? I know this one is pretty basic, but can i expect to pay pretty close to what the calculator spits out?
admin answers:
You will pay exactly what the mortgage calculator pops out. However there are a couple things to look out for. Many mortgage calculators assume you are putting 20% down. So make sure you change the amount you are putting down.
Also keep in mind that the payment that is spit out is simply for the principle and interest of a mortgage payment. You also have to include property taxes, hazard insurance, and possibly Private Mortgage Insurance.
Ruth asks…
how to round up 0.125 to say 7.4250% on a calc mortgage rate adjusting soon need help?
admin answers:
It’s up to the nearest one-hundreth. So in that example, 7.43%
James asks…
I am buying a house, I uses mtg calc, but does anyone know the p[ayment on a 120k mortgage?
I have a 30 yr lined up, don’t know the interest rate off top of my head. I was curious if anyone was a mortgage broker and could give advice. Its a 100% loan with seller concession included.
admin answers:
Okay, you’re looking at a bottom line of $750.00 a month at a 6.5% interest rate.
You also need to consider other things to add in, though. Property taxes, homeowner’s insurance and the nasty one – PMI – primary mortgage insurance. Because your loan is 100% financed there is a good chance that you will have to pay PMI, it’s basically paying an insurance to the mortgage company so they can get their money back in the case that you default. (Yep, you’re betting against yourself! How messed up is that?!?)
On the bright side, the PMI goes away after you have 20% of what the house is worth in Escrow! (Please don’t ask me to explain that. I understand it but it’s hard to explain! LOL)
Overall you’re looking at about $950.00 a month. Pay into that Escrow every chance you get!
(We bought a home 2 years ago at $135,000 with a 4.9% fixed interest. The monthly payment is $1100.00 a month. Ouch!)
Congrats and good luck.
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