Mortgage/Loan Assistant - bi-weekly loan payments

[alessandro basili]

Hi David,

On 1/2/2014 2:07 PM, David Carlson wrote:
[]
>>> Principal: 14,405.19
>>> Interest Rate: 4.75%
>>> Start Date: 11/05/13
>>> Duration: 36 mos
>>> All options are unchecked
>>> Amount: pmt( 0.04750 / 12.00 : 36.00 : 14405.19 : 0 : 0 )
>>> Frequency: Weekly - every 2 weeks - days - Friday
>> The pmt formula is wrong, it should be divided by 24 (twice a month) and
>> elevated to 72 (36*2) to correctly calculate the amount. This has also
>> an impact on the interest/principal formulas (respectively ipmt/ppmt).
>>
>> I have the same problem and I haven't figured out a way to fix this. I
>> reported it in this message: "issues with the Mortgage Druid"
[]
> There are 26 Bi-Weekly payments in most years, depending on the day of
> the week.

That is true, my fault in reporting 24 instead, but the issue still
remains. The formula calculated by the druid is not correct since it
takes the rate and divides it by the number of months, while it should
really take the frequency field information.

Al