Questions

If you have a question about the calculator or about amortization, attach a comment to this page. But please, be sure you’ve checked the FAQ Page first. (You’ll need to create an account to post a comment.)

179 Replies to “Questions”

  1. First let me say thanks for supplying this calculator. For someone who is not a math guy it is quite helpful.
    My question is this. I have a promissory note in the amount of 68,676.10. There are to be 9 quarterly payments of 7,023 at 7% interest and a balloon payment at the end with the last quarterly payment.
    Your calculator matched that of the borrower. However, the borrower missed the first payment. After 15 days late the interest rate goes to 9% until the default is cured.
    My question, as simple as I can describe it is this: The loan was made on 10/01/08 and the first payment which was due on 01/01/09 was made on 3/30/09. The borrower is claiming that he only owes the 2% spread for the 75 days (286.12). I claim that an additional 7% on the principal is owed for 15 days and 9% for the 75 days (1,488). I guess the question is in an amortization schedule does the 1201.83 in interest due on the first payment represent interest from 10/01/08 to 01/01/09 or from 01/01/09 to 03/31/09.
    I appreciate any thoughts whether specific numbers or otherwise. Thanks.

  2. Hi Bret; Thanks so much for the calculator which I have used a few times. I have read some of your postings, and am intrigued by them. I have written lyrics for 40 or more songs over my 70 years time span. (I’m sure none compare with the depth of your writings.) I play the guitar, by ear, I need to learn to write my music down before life is gone. Any suggestions? You seem to be a remarkable person, Thanks for being you.

  3. Hi, Kathyp. While insurance premiums may become part of a payment, like escrow payments, they are not part of an amortization, which involves only principal and interest components of a payment. The calculator deals only with P&I components of a payment schedule.

  4. I hold a note that the borrower cannot seem to supply adaquate insurance. I need to add insurance premiums for a couple of different years. Can you explain how I could do that?

  5. Hi, Keith. I don’t think the calculator will be able to do loan comparisons any time soon. The kind of information to be supplied and the calculations to be done are very different from what the current calculator does.

    I’m sorry I don’t have any recommendations for you.

  6. Is it possible to make a new feature or can you recommend a site that compares when a refi is a good bet compared to an existing load? I use your site all the time to by things from my house to cars and what have you, however I am looking at trying to find out what interest rate is the sweet spot to make a refi a good deal and what the payback time might be for points and fees? -Keith
    PS so far as I can tell in my load it looks like 2.5 years pay back if I go down to 4.5% and 2.3 yr for 4.375% etc.

  7. Oooo, Pizza! One of my favorite foods! But sadly, I think you’re out of my delivery range, so there’s no 30-minutes-or-less guarantee.

    So you think people will want to hear about the “superposition of quantum states” at weddings, huh? You may know stranger people than I do. 😉

    And I’m glad you figured out your loan info, because that means that the calculator works right. 🙂

  8. Well….. whoda’ thunk? lol Yep, you were right…. all taken care of in the closing docs…. Thanks for your quick response!! And thanks for sharing your writings – they’re very good!! I’m going to pass them along to some other interested parties and I’m guessing your “Love & Union” will be plagarized at weddings for some time to come…. it was so well said!! I also believe that most of us don’t hear God because we don’t take the time to listen…. so I’m glad you did!! Take care and God Bless! Karen

  9. Hi, Karen. The calculator does not calculate additional interest because of fees or delays in the start of amortization payments. But check your closing documents carefully. You may find that an extra month’s interest (plus 8 days) have been included in your closing costs. When a closing comes near to the end of month, I think it is common practice to skip a month, but the lender adds the interest due for that “skipped” payment to the closing costs. If so, this figure is not part of the principal: you actually paid it ahead of time, so it is not figured into the amortization anyway.

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