Can someone explain mortgage interest to me?
10-24-2002, 03:31 PM
#11
Senior Member
Join Date: Nov 2001
Location: Bay Area, CA
Posts: 7,316
If it is compunded at 8.5% daily then this is the formula:
A=total amount paid
P=principal
t=number of years
r=annual interest rate
m=#times compounded per year=365
A=P(1+r/m)^(mt)
This is the compound interest forumula. If you are compounding continuously then use:
A=Pe^rt
A=total amount paid
P=principal
t=number of years
r=annual interest rate
m=#times compounded per year=365
A=P(1+r/m)^(mt)
This is the compound interest forumula. If you are compounding continuously then use:
A=Pe^rt
10-24-2002, 09:06 PM
#14
Senior Member
Join Date: Oct 2001
Location: Peoria, AZ
Posts: 10,906
Originally Posted by 13BAce' date='Oct 24 2002, 03:31 PM
If it is compunded at 8.5% daily then this is the formula:
A=total amount paid
P=principal
t=number of years
r=annual interest rate
m=#times compounded per year=365
A=P(1+r/m)^(mt)
This is the compound interest forumula. If you are compounding continuously then use:
A=Pe^rt
A=total amount paid
P=principal
t=number of years
r=annual interest rate
m=#times compounded per year=365
A=P(1+r/m)^(mt)
This is the compound interest forumula. If you are compounding continuously then use:
A=Pe^rt
10-24-2002, 09:30 PM
#15
Senior Member
Join Date: Feb 2002
Posts: 946
Originally Posted by 1Revvin7' date='Oct 24 2002, 07:06 PM
[quote name='13BAce' date='Oct 24 2002, 03:31 PM']If it is compunded at 8.5% daily then this is the formula:
A=total amount paid
P=principal
t=number of years
r=annual interest rate
m=#times compounded per year=365
A=P(1+r/m)^(mt)
This is the compound interest forumula. If you are compounding continuously then use:
A=Pe^rt
A=total amount paid
P=principal
t=number of years
r=annual interest rate
m=#times compounded per year=365
A=P(1+r/m)^(mt)
This is the compound interest forumula. If you are compounding continuously then use:
A=Pe^rt
Hell yeah, I remember that **** from high school. I used to be great at math. What the hell happened to me?
10-25-2002, 10:00 AM
#18
Senior Member
Join Date: Jan 2002
Location: Birmingham, AL
Posts: 844
If you want me to give you a quick and easy for figuring payments here it is.......
if the rate is 8.5% and its for 30 years then take the financed amount ($200,000 for instance) and divide it by 1000, that gives you 200. Multiply the 200 x 7.69. Anyway, the conversion number for 8.5% and 30 years is 7.69 so just figure the other number and x it by 7.69 for the payment.
Then if you want to see how much interest your paying (you dont really want to know) over 30 years multipy the pymt amt by 360pymts and subtract the loan amount which will leave the interest.
Also, why are you paying 8.5% interest??? Unless you have some credit probs thats a damn high rate. I've seen 0 and 0 rates as low at 5.75% lately.
STEPHEN
if the rate is 8.5% and its for 30 years then take the financed amount ($200,000 for instance) and divide it by 1000, that gives you 200. Multiply the 200 x 7.69. Anyway, the conversion number for 8.5% and 30 years is 7.69 so just figure the other number and x it by 7.69 for the payment.
Then if you want to see how much interest your paying (you dont really want to know) over 30 years multipy the pymt amt by 360pymts and subtract the loan amount which will leave the interest.
Also, why are you paying 8.5% interest??? Unless you have some credit probs thats a damn high rate. I've seen 0 and 0 rates as low at 5.75% lately.
STEPHEN
10-25-2002, 10:05 AM
#19
Senior Member
Join Date: Jan 2002
Location: Birmingham, AL
Posts: 844
If you need conversion factors for any other rates I can give you some more of them, well hell I'm typing now, I might as well give you some
rate / factor
5.75 / 5.84
6.00 / 6.00
6.25 / 6.16
6.50 / 6.32
6.75 / 6.49
7.00 / 6.65
7.25 / 6.82
7.50 / 6.99
7.75 / 7.16
8.00 / 7.34
8.25 / 7.51
8.50 / 7.69
Just divide the financed amt by 1000 and multipy by the factor number.
Later,
STEPHEN
rate / factor
5.75 / 5.84
6.00 / 6.00
6.25 / 6.16
6.50 / 6.32
6.75 / 6.49
7.00 / 6.65
7.25 / 6.82
7.50 / 6.99
7.75 / 7.16
8.00 / 7.34
8.25 / 7.51
8.50 / 7.69
Just divide the financed amt by 1000 and multipy by the factor number.
Later,
STEPHEN
10-25-2002, 03:22 PM
#20
Senior Member
Join Date: Nov 2001
Location: Bay Area, CA
Posts: 7,316
Originally Posted by SPOautos' date='Oct 25 2002, 08:05 AM
If you need conversion factors for any other rates I can give you some more of them, well hell I'm typing now, I might as well give you some
rate / factor
5.75 / 5.84
6.00 / 6.00
6.25 / 6.16
6.50 / 6.32
6.75 / 6.49
7.00 / 6.65
7.25 / 6.82
7.50 / 6.99
7.75 / 7.16
8.00 / 7.34
8.25 / 7.51
8.50 / 7.69
Just divide the financed amt by 1000 and multipy by the factor number.
Later,
STEPHEN
rate / factor
5.75 / 5.84
6.00 / 6.00
6.25 / 6.16
6.50 / 6.32
6.75 / 6.49
7.00 / 6.65
7.25 / 6.82
7.50 / 6.99
7.75 / 7.16
8.00 / 7.34
8.25 / 7.51
8.50 / 7.69
Just divide the financed amt by 1000 and multipy by the factor number.
Later,
STEPHEN