+ Reply to Thread
Results 1 to 2 of 2

need a function to calculate a mortgage payment

  1. #1

    need a function to calculate a mortgage payment

    Does anyone have a function to calculate a amortized mtg payment. I tried to
    use the pmt function, and it came out all wrong. Have tried many different
    iterations of the numbers, and they still do not come out to be same as my
    Loan Officer Point software indicates the answer should be.

    I need to put this function calulation in an excel spreadsheet.


  2. #2
    Forum Contributor Lotus123's Avatar
    Join Date
    MS-Off Ver

    Mortgage Formula

    Thing to keep in mind with functions like PMT. Cash outflows have a negative sign ;cash inflows have a positive sign. As such, the result of a typical PMT formula will give you a negative number...and that is okay.

    So, if you have a mortgage payment on a 30 year $100,000 loan at 5% interest, you could calculate the payment as follows:

    NOTE - The 12's are to make everything calculated monthly instead of yearly.

    The answer is $536.82 per month. If that still seems off, then it could be because the Loan programs wants the payment due at the beginning of the month instead of the end of the month. If that is the case, try the formula like this:

    =PMT(0.05/12,30*12,100000,0,1)...the 1 at the end tells Excel the payment will be made at the beginning of the month instead of the end (and as such, slightly less interest).

    Hope that helps!

+ Reply to Thread

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts

Search Engine Friendly URLs by vBSEO 3.6.0 RC 1