Mortgage Math. Fixed-Rate Mortgage Calculations Payments Balances Yields Annual Nominal Rate APR True Annual Nominal Rate Effective Yields. Fixed-Rate Mortgages. Let’s look at this mortgage in terms of “time value of money” principles 1. The borrower’s payments are a simple annuity.
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Calculate the maximum loan size you can borrow if you can pay $1000 per month, the interest rate is 7.5%, and the maturity is 25 years.
N=??? (180 months)
Calculate the interest rate of a loan if the principal amount of the loan is $175,000, the monthly payment is $1,367.36 and the maturity of the loan is 30 years.
i=??? (.72292% /month)
Note that EXCEL wants the interest rate in decimal form.