Home Equity Loan
Hi:
I have a loan with a $20,000 principal balance at 4.65%, 5 years. Using the IPMT function the monthly payments are $374.23. However, I do not make constant payments. For example, my first three payments were $535, $1400 and $461 on 10/11/11, 11/9/11 and 12/9/11, respectively. Is there any way to keep tarck of a loan where payments are not constant. All my payments will be more than the required amount. Is the difference between my payment and the actual amount applied all to principal?
Thanks
Hi,
Since the payments vary you'll need to build a monthly table to work them out.
Alternatively there are many Excel templates on the web, just google Excel loan repayment calculator, or something similar.
One such is here http://www.excely.com/template/loan-calculator.shtml
Whether the difference between the actual and minimum payment should all be applied to the principal reducing balance, or some other treatment will depend on the conditions attached to your loan, although it would be normal to reduce the outstanding balance.
Regards
Richard Buttrey
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