Xref: utzoo can.general:6968 alt.msdos.programmer:2738 comp.os.msdos.programmer:5334 Path: utzoo!utgpu!news-server.csri.toronto.edu!bonnie.concordia.ca!nstn.ns.ca!usenet From: maceache@fox.nstn.ns.ca (Tim Maceachern) Newsgroups: can.general,alt.msdos.programmer,comp.os.msdos.programmer Subject: Re: Canadian Mortgage Calculations Message-ID: <1991May27.114929.27767@nstn.ns.ca> Date: 27 May 91 11:49:29 GMT References: <1587@geovision.gvc.com> Sender: usenet@nstn.ns.ca (NNTP Entity) Distribution: can Organization: NSTN Network Operations Centre, Nova Scotia, Canada Lines: 40 pt@geovision.gvc.com (Paul Tomblin) writes: >Does anybody out there know how to calculate mortgage payments (and >interest, etc) for Canadian mortgages. I managed to come up with >a formula that is in fairly close agreement to my mortgage table book >for monthly payments, but I have no idea why. I also don't know if >it's correct for bi-weekly payments. >I'll take anything: Math notation, Lotus spreadsheets, C code, >even COBOL (god help me). I just need the formulas. >My bank doesn't know. They just plug the numbers in and the computer >tells them everything..... >-- >Paul Tomblin, Department of Redundancy Department. ! My employer does >Two roads diverged in a wood, and I/ I took the one less ! not stand by my >travelled by/ And that is why I'm lost, dammit... ! opinions.... >pt@geovision.gvc.com or {cognos,uunet}!geovision!pt ! Me neither. I believe that the formula is arrived at by using 6 month compounding terms. That is, the actual rate quoted is the compounded rate arrived at in two 6 month terms -- annual rate = (1 + semi-annual rate)^2 - 1. Monthly payments can be calculated using the 6 month term calculations. Bi-weekly payments are usually made in the same amount (actually half) as the monthly payments, but of course you get a few more each year. I don't think you can calculate bi-weekly payments any other way. So, take your annual rate, figure out a semi-annual rate, figure out the payment amount in 6 month chunks (i.e. use a 50 term rate for a 25 year mortgage) using a spreadsheet payment function, then divide the 6 month chunk into 6 monthly payments. This is my understanding of the situation. Your mileage may vary. Don't forget to allow for life insurance payments. Tim MacEachern maceache@corp.nstn.ns.ca or maceache@fox.nstn.ns.ca