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.