Great video thank you for sharing. I was looking at expanding this to show the real interest that could potentially be saved given that most financial institutions calculate interest on a daily basis(365 days per year) and if you make fortnightly payments instead of monthly?
Hi! I could tell that you were trying to get through this video as fast as possible and I thought that was why I had to keep doubling back when you were entering the formula for both the interest payment and the loan principal on the first line. See, I couldn't understand why your interest payment ($533) plus your principal pymt ($281) didn't add up to the monthly payment you had in your summary (cell B7-$764). That's when I realized that this was because you also added an extra payment of $50. I appreciate you adding that extra payment component but did you realize that by designing your amortization schedule this way that it means that you are actually adding $50 to EVERY payment? Wouldn't it be more flexible to just added an extra column for extra payments instead? That way you could enter whatever extra payment amounts you wanted for different periods to see how your mortgage amounts would change instead of only being able o see what future balances would be if you added an extra $50. Because if you think about it, what would happen if on the 3rd payment, you decided that you didn't want to add $50 to your principal balance? Instead you wanted to add more, less or no extra payment at all? With the way it's set up now, the $50 is being applied to every principal payment which means that the next time you decide to pay a different amount, your whole amortization table will no longer be accurate. So if you ever decide to update this video, you might consider putting an "extra payment" column to the right of the principal column to put in the exact $ amt of the extra payment. So payment 1 would be; Mortgage Amt $160,000, Interest Payment $$533.33, PrincipAL Payment $230.53, Extra Payment $50 and then the new balance would be $159,719.47. That way, if you don't want to make an extra payment on the 2nd payment, then you can skip it without throwing off the whole amortization table! Just a thought! Hope that makes sense! Take care!
FREE ADVICE-Drink less Red Bull when you make a teaching video......I've seen a few vids on amm charts and they all leave out the DAILY INTEREST REDUCTION....My note to my borrower is a fixed rate and fixed term , but if he pays 3 or 5 days earlier than the 15th, I have to credit him for those days. Can someone please make that video or correction?
Great video thank you for sharing. I was looking at expanding this to show the real interest that could potentially be saved given that most financial institutions calculate interest on a daily basis(365 days per year) and if you make fortnightly payments instead of monthly?
Very technical. It was a little hard to follow but got it. Thanks a lot!
Great video, very helpful.
Hi! I could tell that you were trying to get through this video as fast as possible and I thought that was why I had to keep doubling back when you were entering the formula for both the interest payment and the loan principal on the first line. See, I couldn't understand why your interest payment ($533) plus your principal pymt ($281) didn't add up to the monthly payment you had in your summary (cell B7-$764). That's when I realized that this was because you also added an extra payment of $50. I appreciate you adding that extra payment component but did you realize that by designing your amortization schedule this way that it means that you are actually adding $50 to EVERY payment? Wouldn't it be more flexible to just added an extra column for extra payments instead? That way you could enter whatever extra payment amounts you wanted for different periods to see how your mortgage amounts would change instead of only being able o see what future balances would be if you added an extra $50.
Because if you think about it, what would happen if on the 3rd payment, you decided that you didn't want to add $50 to your principal balance? Instead you wanted to add more, less or no extra payment at all? With the way it's set up now, the $50 is being applied to every principal payment which means that the next time you decide to pay a different amount, your whole amortization table will no longer be accurate. So if you ever decide to update this video, you might consider putting an "extra payment" column to the right of the principal column to put in the exact $ amt of the extra payment.
So payment 1 would be;
Mortgage Amt $160,000, Interest Payment $$533.33, PrincipAL Payment $230.53, Extra Payment $50 and then the new balance would be $159,719.47.
That way, if you don't want to make an extra payment on the 2nd payment, then you can skip it without throwing off the whole amortization table! Just a thought! Hope that makes sense! Take care!
That is an excellent comment, and I agree.
Hello.. How do you calculate the interest rate if I pay different monthly amounts extra?
Brilliant video, thank you!
what's the shortcut for locking down a cell ( $)
FREE ADVICE-Drink less Red Bull when you make a teaching video......I've seen a few vids on amm charts and they all leave out the DAILY INTEREST REDUCTION....My note to my borrower is a fixed rate and fixed term , but if he pays 3 or 5 days earlier than the 15th, I have to credit him for those days. Can someone please make that video or correction?
The vedio was great but you were really fast😢
I cant even see what's going on here 😭😭😭😭😭💔
too many formula lol