http://www.bretwhissel.net/blog/2009/10/even-more-math/ Curiosities of a Rambling Mind Fri, 27 Jan 2012 06:34:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://www.bretwhissel.net/blog/2009/10/even-more-math/comment-page-1/#comment-327 Bret Whissel Tue, 09 Aug 2011 21:07:35 +0000 http://www.bretwhissel.net/blog/2009/10/even-more-math/#comment-327 Hi, Margaret. How interest is agreed to be paid on a loan would usually be decided by contract in advance. For many typical bank mortgages, the interest owed is paid first, and the remainder of the payment is applied toward reducing the principal balance. Since I'm not in the finance biz, I don't really know what you mean by "front end" or "back end" of the loan in this context. If you don't have a formal contract that spells out what to do in this situation, perhaps the spreadsheet can help you figure out what's fair to you and your mortgagee. Hi, Margaret. How interest is agreed to be paid on a loan would usually be decided by contract in advance. For many typical bank mortgages, the interest owed is paid first, and the remainder of the payment is applied toward reducing the principal balance. Since I’m not in the finance biz, I don’t really know what you mean by “front end” or “back end” of the loan in this context. If you don’t have a formal contract that spells out what to do in this situation, perhaps the spreadsheet can help you figure out what’s fair to you and your mortgagee.

]]> http://www.bretwhissel.net/blog/2009/10/even-more-math/comment-page-1/#comment-325 margaret Thu, 04 Aug 2011 05:57:23 +0000 http://www.bretwhissel.net/blog/2009/10/even-more-math/#comment-325 Question! I have a morgagee who has paid a few extra dollars on the principal on 20 payments. My question is - Should I take that amount off the front end or back end of the loan? Question! I have a morgagee who has paid a few extra dollars on the principal on 20 payments. My question is – Should I take that amount off the front end or back end of the loan?

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