What is loan amortization schedule

what is loan amortization schedule

This is the date that interest on the loan begins to compound.

Interest/Amortization options

Interest Rate Type. The user can select a fixed or variable interest rate for their amortization schedule. Selecting the "Variable" interest rate option enables the "Rate Options " button. You must press the "Rate Options " button and check either "Include rate adjustments" or "Run Simulation" to enable the variable interest rate options.

Interest-only option.

This option allows the user to specify how long the interest-only period will last. The interest-only period can last through the first year of the loan up to the first 50 years of the loan.

Show interest rate change details.

Selecting this option will include in your amortization schedule the exact day, month, and year that an interest rate change occurs. This option will not be available unless the user chose to have

a variable interest rate.

360 day standard mortgage table.

Standard amortization table which assumes there are 30 days in each month. This option is also called the 30/360 method.

365 days in each year.

In each year there are 365 days. February 29th is always ignored. This option is often referred to as the actual/365(fixed) method

366 days, when appropriate. Accounts for leap years.

Actual number of days in each year. This option is also referred to as the actual/actual method or by the ISDA (International Swaps and Derivatives Association) the actual/365.

Save all amortization schedule options on exit.

By checking this option all amortization schedule options are saved when you close the program. This allows the user to pick up right where he/she left off.

Note: this also saves the loan amount, interest rate, and loan term (years).

Source: www.mortgageloancalculating.com

Category: Bank

Similar articles: