Wednesday, September 16, 2009
Thursday, September 3, 2009
Interest Rates for 9-3-2009
30 year fixed conventional 4.625 with 1 point origination
30 year fixed conventional 4.875 with no origination
15 year fixed conventional 4.25 with no origination
30 year fixed FHA 4.875 with 1 point origination
30 year fixed FHA 5.125 with no origination
“All rates and programs are subject to change without notice. This information is intended for mortgage professionals only and is not an
advertisement to extend consumer credit as defined by REGZ. The above rate represents a consumer on a rate and term refinance transaction with a credit score above 740 with 40% or more equity in their home, a minimum loan amount of $125,000 , a maximum loan amount of $417,000 and establishing an impound/escrow account."
30 year fixed conventional 4.875 with no origination
15 year fixed conventional 4.25 with no origination
30 year fixed FHA 4.875 with 1 point origination
30 year fixed FHA 5.125 with no origination
“All rates and programs are subject to change without notice. This information is intended for mortgage professionals only and is not an
advertisement to extend consumer credit as defined by REGZ. The above rate represents a consumer on a rate and term refinance transaction with a credit score above 740 with 40% or more equity in their home, a minimum loan amount of $125,000 , a maximum loan amount of $417,000 and establishing an impound/escrow account."
Details on the Amortization Schedule
The question was if you take the total interest charged and divide it by the interest rate it does not seem to equal the beginning debt. I replied that the interest is compound and this CPA did the math to back that up so I thought you should see it.
You were right; the difference in the first line of the amortization
schedule was due to the compound interest.The interest rate listed was 5.685%, compounded monthly works out to
5.836..%.
If you take the beginning balance of the mortgage, $189,509.42, and add the
annual service fee,$360, and the annual MIP, $976, and multiply that sum by
the interest rate, 5.685% divided by 12 and raised to the 12th power gives
you a total ending balance of $201,983 which is $42 over the amort. schedule.
If you just take the beginning balance and multiply it by the interest rate
compounded and then add the service fee and the MIP, you end up with a
balance of $201,905, which is $35 short.
So the difference is multiplying each month's fees, $30 plus $81.33, by the
compound rate raised to the 12th power, followed by the next month's fees
raised to the 11th power, and so forth.
That calculation should get us to the correct ending balance.
Thanks for your help.
You were right; the difference in the first line of the amortization
schedule was due to the compound interest.The interest rate listed was 5.685%, compounded monthly works out to
5.836..%.
If you take the beginning balance of the mortgage, $189,509.42, and add the
annual service fee,$360, and the annual MIP, $976, and multiply that sum by
the interest rate, 5.685% divided by 12 and raised to the 12th power gives
you a total ending balance of $201,983 which is $42 over the amort. schedule.
If you just take the beginning balance and multiply it by the interest rate
compounded and then add the service fee and the MIP, you end up with a
balance of $201,905, which is $35 short.
So the difference is multiplying each month's fees, $30 plus $81.33, by the
compound rate raised to the 12th power, followed by the next month's fees
raised to the 11th power, and so forth.
That calculation should get us to the correct ending balance.
Thanks for your help.
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