Rounding in Mortgage Assistant

[Derek Atkins]

Tom,

Tom C Keene <t.keene at q.com> writes:

> On Nov 12, 2012, at 9:41 AM, Derek Atkins wrote:
>
>> My first guess is that the interest rate you think you're paying isn't
>> exactly the interest rate the bank is charging you.  For example,
>> perhaps they are rounding the rate at 3 or 4 digits?
>> 

> As a general rule mortgage companies round to benefit the company.  So
> when calculating mortgage interest they will always round up.  Does
> Mortgage Assistant always round interest up?

Note that I am talking about Interest RATE, not the computed interest.
GnuCash's engine has multiple rounding techniques but only one is
default, which I believe is "nearest".  So 0-4 gets rounded down and 5-9
gets rounded up.

But more to the point, you might think your interest is 3.789% but the
bank is computing on 3.79%.  While this example probably isn't correct,
there have certainly been cases where banks rounded interest to 4 sig
digits.  So you might want to check if changing the percentage rate
gives you a more accurate number.

But yes, it still could be the final rounding of the computed interest.
Alas, there is no way to change that without recompiling; the default
rounding method is deep in the code and hard coded, and changing that
(without making it an options) would break it for most everyone else.

>> Please remember to CC this list on all your replies.
>> You can do this by using Reply-To-List or Reply-All.

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
       URL: http://web.mit.edu/warlord/    PP-ASEL-IA     N1NWH
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