Loan Amortization Schedule with Guide

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					                                      LOAN AMORTIZATION

As borrower you are better suited with information rather than staying in the dark while listening to the
lenders presentation of the loan amounted being negotiated instead of a constructive participation on
discussion. Information is the power and the more the quality of information the higher the probability
to have an informed decision. The excel loan amortization template presents the borrower with the
power to analysis different inputs for the loan and make the conclusion the capacity to fulfill the loan
requirement every month. Further analysis on interest loan can mean pulling up negotiation skills or
shopping around to bring interest rate down by a point, a point might mean savings thousands dollars
and the loan affordability. With the excel template, the borrower has the upper hand to negotiate better
terms and make a deal based on loan factors by comparing the resulting output with the competing
lenders in the market. Borrower should not let the adrenal impose be the root of deciding the deal based
on loan monthly payment affordability, the excitement should be checked by the interest to be coughed.
This can influence how the deal is sealed.

There is cost of borrowing, which varies form borrower to borrower. A borrower classified as a higher
risk borrower will pay a higher interest and not have the ability to control the negotiation on terms of
the loan. A borrower classified in a minimum risk category has the capacity to shop for the best interest
rates in the market, which means the borrower can acquire the best interest rate and can afford to
negotiate the terms of the loan. The loan should be taken for a deserving purpose and the borrowed
money should be well utilized. Consider the exorbitant interest charged on credit cards, the credit cards
are assessable to majority of people. Looking at the cost of borrowing by plugging variables in excel
work sheet, might mean change on spending behavior and postponing unnecessary expenses. Borrowing
is expensive and the reality of the cost is beyond the comfort of monthly payment affordability.

The amortization calculation gives the breakdown between the principle and interest. The user can view
how changes on variable loan term will affect the monthly payment; the variables are principle amount,
interest rate, the years of loan repayment and the number of payments per year. By looking at different
variables, the user can adjust the terms of the loan, or reconsider the principle to be borrowed in order
access the affordability. Taking principle amount and interest rate as constant, a longer repayment plan
will indicate a lower monthly payment as compared to a shorter term repayment plan, but the longer
term repayment plan is more expensive in terms of interest paid at the end of the loan. Adjusting loan
term can help a borrower with ability to afford high monthly payment to save on interest.

Planning is the essential to borrowing, and borrowing should be done on considerate diligence approach
to justify the cost of borrowing. Consider the total cost of borrowing when pulling the decision which
suit monthly payment plan.
                                        LOAN AMORTIZATION SCHEDULE

Principle Amount     $     50,000.00
Loan Term (Years )                  5
Annual Interest Rate          6.000%
Payment Per Year                   12
Payment                      $966.64

 Payment Numbers         Payment         Principle   Interest    Balance        of Loan
        0                                                             50000
        1                   $966.64        $716.64     $250.00   $49,283.36       $250.00
        2                   $966.64        $720.22     $246.42   $48,563.14       $496.42
        3                   $966.64        $723.82     $242.82   $47,839.31       $739.23
        4                   $966.64        $727.44     $239.20   $47,111.87       $978.43
        5                   $966.64        $731.08     $235.56   $46,380.79     $1,213.99
        6                   $966.64        $734.74     $231.90   $45,646.05     $1,445.89
        7                   $966.64        $738.41     $228.23   $44,907.64     $1,674.12
        8                   $966.64        $742.10     $224.54   $44,165.54     $1,898.66
        9                   $966.64        $745.81     $220.83   $43,419.73     $2,119.49
       10                   $966.64        $749.54     $217.10   $42,670.19     $2,336.59
       11                   $966.64        $753.29     $213.35   $41,916.90     $2,549.94
       12                   $966.64        $757.06     $209.58   $41,159.84     $2,759.52
       13                   $966.64        $760.84     $205.80   $40,399.00     $2,965.32
       14                   $966.64        $764.65     $202.00   $39,634.36     $3,167.32
       15                   $966.64        $768.47     $198.17   $38,865
Description: This Loan Amortization Schedule sets forth a basic spreadsheet to calculate the principal and interest payments on a loan. The user should only populate the cells for: the principal amount, loan term, annual interest rate, and payments per year. The spreadsheet will automatically calculate, based on these user inputs, the balance remaining on the loan and cumulative interest on the loan. This basic spreadsheet should be used by borrowers to assess whether they will have the ability to make the scheduled principal and interest payments due on a fully amortizing loan.
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