gvorbeck

2016-07-28, 07:17 PM

HELLO DEAR FRIENDS,

I was hoping I could receive some help with the formula to calculate the payoff of a mortgage. So I have done the amortization table using the PPM, PPMT and IPMT for the payment, principal and interest payments respectively. No trouble there.

Now, here's the challenge: The original Loan amount is of $104697 for 145 months at a fixed rate of 10.11 % (yep it's high but I'm in Ecuador).

I am down to payment 23 (July 2016, loan started September 2014).

CHALLENGE: I want to add a one time payment of $15,000 to the principal on payment no.25 , normally, this would reduce the loan number of payments but it leaves the payment amount unchanged. What I am looking is to reduce the Payment amount without changing the total number of payments. One would ask why? Well, this office is being rented by someone who basically is paying part of the loan for me, but, since the $$ amount of the rent is less than the payment amount for the loan, I am paying some extra $$. What I am looking is to reduce that monthly payment (with this extra $15,000 to the principal) so that the rent covers my monthly loan payment.

Your help would be GREATLY appreciated.

Cheers,

Gonzalo

I was hoping I could receive some help with the formula to calculate the payoff of a mortgage. So I have done the amortization table using the PPM, PPMT and IPMT for the payment, principal and interest payments respectively. No trouble there.

Now, here's the challenge: The original Loan amount is of $104697 for 145 months at a fixed rate of 10.11 % (yep it's high but I'm in Ecuador).

I am down to payment 23 (July 2016, loan started September 2014).

CHALLENGE: I want to add a one time payment of $15,000 to the principal on payment no.25 , normally, this would reduce the loan number of payments but it leaves the payment amount unchanged. What I am looking is to reduce the Payment amount without changing the total number of payments. One would ask why? Well, this office is being rented by someone who basically is paying part of the loan for me, but, since the $$ amount of the rent is less than the payment amount for the loan, I am paying some extra $$. What I am looking is to reduce that monthly payment (with this extra $15,000 to the principal) so that the rent covers my monthly loan payment.

Your help would be GREATLY appreciated.

Cheers,

Gonzalo