Scenario: You are purchasing a house costing $100,000; you put 20% down in cash and finance the rest at 7.25% payable monthly for 30 years. Build a payment schedule for this loan following the handout as a guide.
| What is the principal for this loan? | What is the adjusted rate = rate divided by the number of times compounding? | What is the term for this loan? |
| What formula do you use for the first payment? | |
| What formula do you use for the interest on the first payment? | |
| What formula do you use for the principal on the first payment? | |
| What are the monthly payments on this loan? | |
| How much will you pay over the life of the loan (including the down payment)? | |
| How much of that is interest? |
| A1 | B | C | D | E | F |
| 2 | cost= | USE FORMULAS IN F3,F4,F5,F9,C10,D10,E10,F10. | |||
| 3 | %down= | borrowed= | |||
| 4 | # pmts= | adj rate= | |||
| 5 | annual rate= | pmt= | |||
| 6 | pmts/yr= | total paid | |||
| 7 | total interest | ||||
| 8 | PMT # | PMT AMT | INT | PRINC | BAL |
| 9 | 0 | ||||
| 10 | 1 | ||||
| 11 | 2 | ||||
| 12 | 3 |
What do the first 3 payments look like?
| Payment # | Payment | Interest | Princial | Balance |
|---|---|---|---|---|
| 0 | 0 | 0 | 0 | |
| 1 | ||||
| 2 | ||||
| 3 | ||||
What are the 1,2 and 5 year payoff figures?
| 1 Year | 2 Year | 5 Year | |
|---|---|---|---|
| Payoff |
| If the rate is increased by .5%, what are the monthly payments? | |
| How much will you pay over the life of the loan now? | |
| How much of the total is interest? |
What are the 1,2 and 5 year payoff figures?
| 1 Year | 2 Year | 5 Year | |
|---|---|---|---|
| Payoff |
Change the interest rate back to 7.25%.
| If the down payment is increased by 5%, what are the monthly payments? | |
| How much will you pay over the life if the loan now? | |
| How much of the total is interest? |
What are the 1,2 and 5 year payoff figures?
| 1 Year | 2 Year | 5 Year | |
|---|---|---|---|
| Payoff |
Change the down payment back to 20%.
| If you can manage to pay an extra $100.00 per month, when will you make your last payment? | |
| What are the monthly payments? | |
| How much will you pay over the life of the loan now? | |
| How much of the total is interest? |
What are the 1,2 and 5 year payoff figures?
| 1 Year | 2 Year | 5 Year | |
|---|---|---|---|
| Payoff |