Mortgage Druid is not giving me expected results

Laurent Duperval lduperval at videotron.ca
Mon Apr 12 23:00:14 EDT 2004


Josh Sled wrote:

>On Mon, 2004-03-08 at 10:44, Laurent Duperval wrote:
>
>  
>
>>Initial: 130,000
>>Interest: 4% for two years
>>Bi-weekly payment
>>
>>The value calculated by GC is:
>>
>>pmt( 0.04000 / 12 : 227 : 130000.00 : 0 : 0 )
>>
>>which give 817.33. It should be around $400, I think.
>>    
>>
>
>Ah.  While you have 18 years _left_ to pay, the payment [pmt(...)] is
>computed based on the total length of the loan.  You have two options:
>
>1/ Change '227' to the correct length of the entire loan.
>
>2/ Recompute the present value, given 18 years remaining.
>
>...jsled
>
>  
>


Sorry for reviving this thread so late... I received a statement from 
the bank and it looks like the values I entered were correct. The bank 
says that amortizing is on 227 months. The balance is 130,000, rate is 
4% and payment is every two weeks. According to the schedule they sent 
me, I'm supposed to pay 407.55 per period. GC says 817.33 which is about 
twice as much as it should be. I really don't know which part of the 
calculation is incorrect. Unless the bank made an error... Nah, I can't 
be that lucky. :-)

L

-- 
<Laurent Duperval> lduperval at videotron.ca

HINDS' LAW OF COMPUTER PROGRAMMING
    3) If a program is useless, it will have to be documented.




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