In order to qualify for a mortgage you need to provide the bank 2 or in some cases 3 years tax returns. You need to have a full time good paying job for at least 2 years.

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You bought a condominium 2 years ago for $210,000, with a down payment of 30 percent. you took out a 7.20 percent, 5-year canadian mortgage amortized over 25 years. here is what i did: i(weekly)=0.0680% pv=147,000 fv=0 n=1300 (25x52) .:pmt=170.36 am i supposed to use pmt now and try to find a new 'n'? maybe 'n' is not even required in the first calculation. i am not sure. it seems easy but i can't seem to figure out how to do it. some help will be appreciated.

You could shave a few years off. However, most lenders won't let you make weekly payments. They want the full amount each month. You could achieve a similar result by adding about 8% to each monthly payment.

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I have a 40 year fixed rate mortage. welp, really a 30 year mortgage amortized over 40 years with a lump sum due in 30. we are 2 years into this mortgage. the interest rate is 6.75%. my questio is if my wife and i made one principal only payment of 3200 per year over the next 28 years how long would it take us to pay off this loan??

You will payoff the entire loan in 30 years and 3 months.

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Hi everyone, i was wondering that what will i have to pay once my current mortgage comes for renewal after the first term of 5 yrs. to be specfic, currently i have a locked interest rate for 5 yrs. after the term is over i would have to shop around for a good rate. assuming that i get the same rate and i lock in for next 5 yrs. what will be my mortgage payments keeping in mind that i have paid out a portion of the capital. will the new payment be based on the new outstanding amount. if so then for how long will be amortised for. i am confused. in the back of my head i know that the mortgage is amortised for 25 yrs and the principal payments wont change only the interest part changes. i want to know the logic behind the calculation .......................i may be wrong. please help with calculation. thx for your time guys

Try to get the new amortization for a minimum of 5 less years each time your "balloon" is due. Otherwise you will never pay back the loan.

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I have a condo that i rent out and i have a line of credit that is at a lower interest rate than my mortgage. i am thinking about taking out some of that money to lower my primary home's mortgage principal. i would still make the same payments and i think the tax situation with the interest on both loans is a wash. the credit line would not amortize the same as a structured mortgage, so more of the payment would go towards the principal instead of interest at first, so i think i can come out way ahead in the long run. am i right? are there any pitfalls i am not considering? how can you say a mortgage and home equity line of credit amortizes the same? a mortgage has interest calculated the entire length of the loan and you pay it up front while the line of credit has an interest rate on the principal each month that is reduced by the amount i pay in excess of the prior month's finance charge.

yes, by a factor of 2

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So i'm buying my first house, its an fha loan, and the biggest thing on my mind is figuring out how to pay as little interest as possible over the years. i'm buying a less expensive house that i could afford, so that i can have money left over to prepay on the principal as often as possible, and get the house paid off much quicker than 30 years. ( i know alot of people probably think, its my first house, i'm going to move soon, upgrade, etc, but i doubt it. i rarely move, i've been in the same 5 mile radius my whole life, i plan to be in this house for a long time) right now i've already got my minimum down payment/closing costs. i've also got enough money for an emergency fund. then on top of that i've got around $4k extra that i can apply to the principal. now since i'm not completely familiar with how the whole amortization schedule works, i'm wondering which way i'd be better off. a) just applying that extra directly to my down payment up front, which will lower my monthly payment by about $20 a month, but will still be amortized at 30 years (as far as i know). b) just putting down the minimum down payment, and then in about a month applying that $4k to the principle. that way the loan has already been amortized, and (if my thinking is right), i'll be getting a jump start through the amortization schedule, so that on all my future payments, more of the payment will be going straight to principal and less towards interest. and in effect taking a year or so off the end of the loan. (that's how i think it works, although i don't fully understand how the ammortization works, so that's why i'm asking the question) so with overall interest savings throughout the years in mind, which is a better option, or are they both going to pretty much be the same?

I think they're going to end up pretty much the same. The idea with prepayment is to lower the principal so that you're paying interest on a lower overall balance. So let's say hypothetically that you had a 100k loan - whether you paid the 4k before or after the loan dispersed, you'd still end up with a 96k balance to pay interest on every month, rather than the full 100k. And actually, option B might be slightly less advantageous, because you'd be accruing interest on 100k throughout that first month, rather than on 96k. Pretty sure you can do it either way and end up with basically the same result, but I'd probably just do it up front.

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Make a choice of the right deodorant, toothbrush, hair goop, and facial scrub. buy the best environmentally friendly light bulbs, the strongest garbage bags and environmentally friendly room fresheners? do you read all the ingredients on every single thing you buy in the supermarket, and understand what you've read? do you know know what free radicals are and the right anti-oxidants to take to prevent all heart disease and high cholesterol? do you know the difference between ldl and hld cholesterol? do you reduce, reuse and recycle? do you know the best mortgage to pick and how long to amortize it over? whether you should buy a hybrid or a solar-powered vehicle? i could go on, but i think you get the picture. would you agree that we have too many choices to make? that life is far too complicated? i think we're oversold on far too many products and too much advertising. no wonder so many people suffer from depression and anxiety. there are groups called intentional communities around the world. i'm seriously thinking of moving to one. life is so much simpler. many of them are ecologically based, they raise crops, make many things themselves. they sell what they make to the community. some even have a community store on the farmland which is open to the general community as well. these aren't closed communities with bizarre lifestyles we've read about. everyone has to put in x amount of hours each month doing various jobs to contribute towards the welfare of everyone. i think some of them sound really great. far less stressful than city living.

its kind of what a democracy is, we are allowed to make our own decisions, but yes i'm in agreement with you. it is overwhelming.

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The principal balance. a) true b) false 2. during the month, a company sells goods for a total of $106,000, which includes sales taxes of $6,000; therefore, the company should recognize $100,000 in sales revenues and $6,000 in sales tax expense. a) true b) false multiple choice 3. which of the following is not an advantage of issuing bonds instead of common stock? a) stockholder control is not affected. b) earnings per share on common stock may be lower. c) tax savings result. d) each of the above is an advantage. 4. the following totals for the month of april were taken from the payroll register of noll company. salaries 24000 fica taxes withheld 1100 income taxes withheld 5000 medical insurance deductions 900 federal unemployment taxes 64 state unemployment taxes 432 the entry to record accrual of employer’s payroll taxes would include a a) debit to payroll tax expense for $496. b) debit to payroll tax expense for $1,596. c) credit to fica taxes payable for $2,200 d) credit to payroll tax expense for $496. 5. wolford company borrowed $750,000 from u.s. bank on january 1, 2009 in order to expand its mining capabilities. the five-year note required annual payments of $195,327 and carried an annual interest rate of 9.5%. what is the amount of expense wolford must recognize on its 2010 income statement? a) $71,250 b) $59,463 c) $52,694 d) $46,555 6. the following totals for the month of april were taken from the payroll register of metz company. salaries 20000 fica taxes withheld 1533 income taxes withheld 4400 medical insurance deductions 800 federal unemployment taxes 160 state unemployment taxes 1000 the entry to record the accrual of federal unemployment tax would include a a) credit to federal unemployment taxes payable for $160. b) credit to federal unemployment taxes expense for $160. c) credit to payroll tax expense for $160. d) debit to federal unemployment taxes payable for $160. 7. the interest charged on a $100,000 note payable, at the rate of 6%, on a 60-day note would be a) $6,000. b) $3,333. c) $1,500. d) $1,000. 8. unearned rental revenue is a) a contra account to rental revenue. b) a revenue account c) reported as a current liability. d) debited when rent is received in advance. 9. when the straight-line method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated by a) adding the amount of premium amortized for that period to the amount of cash paid for interest during the period. b) subtracting the amount of premium amortized for that period from the amount of cash paid for interest during the period. c) multiplying the face value of the bonds by the stated interest rate. d) multiplying the face value of the bonds by the market interest rate. 10. a current liability is a debt that can reasonably be expected to be paid a) within one year, or the operating cycle, whichever is longer. b) between 6 months and 18 months. c) out of currently recognized revenues. d) out of cash currently on hand. 11. west county bank agrees to lend drake builders company $100,000 on january 1. drake builders company signs a $100,000, 6%, 6-month note. the entry made by drake builders company on january 1 to record the proceeds and issuance of the note is a)interest expense 3000 cash 97000 notes payable 100000 b)cash 100000 notes payable 100000 c)cash 100000 interest payable 3000 notes payable 103000 d) cash 100000 interest expense 3000 notes payable 100000 interest payable 3000 12. from the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that a) bond interest is deductible for tax purposes. b) interest must be paid on a periodic basis regardless of earnings. c) income to stockholders may increase as a result of trading on the equity. d) the bondholders do not have voting rights.

When a monthly mortgage payment is made and recorded the debit to Mortgage Payable represents the reduction in? the principal balance. A) True 2. During the month, a company sells goods for a total of $106,000, which includes sales taxes of $6,000; therefore, the company should recognize $100,000 in Sales Revenues and $6,000 in Sales Tax Expense. B) False Multiple Choice 3. Which of the following is not an advantage of issuing bonds instead of common stock? B) Earnings per share on common stock may be lower. 4. The following totals for the month of April were taken from the payroll register of Noll Company. salaries 24000 FICA taxes withheld 1100 income taxes withheld 5000 medical insurance deductions 900 federal unemployment taxes 64 state unemployment taxes 432 The entry to record accrual of employer’s payroll taxes would include a A) debit to Payroll Tax Expense for $496. 5. Wolford Company borrowed $750,000 from U.S. Bank on January 1, 2009 in order to expand its mining capabilities. The five-year note required annual payments of $195,327 and carried an annual interest rate of 9.5%. What is the amount of expense Wolford must recognize on its 2010 income statement? A) $71,250 6. The following totals for the month of April were taken from the payroll register of Metz Company. salaries 20000 FICA taxes withheld 1533 income taxes withheld 4400 medical insurance deductions 800 federal unemployment taxes 160 state unemployment taxes 1000 The entry to record the accrual of federal unemployment tax would include a A) credit to Federal Unemployment Taxes Payable for $160. 7. The interest charged on a $100,000 note payable, at the rate of 6%, on a 60-day note would be D) $1,000. 8. Unearned Rental Revenue is C) reported as a current liability. 9. When the straight-line method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated by B) subtracting the amount of premium amortized for that period from the amount of cash paid for interest during the period. 10. A current liability is a debt that can reasonably be expected to be paid A) within one year, or the operating cycle, whichever is longer. 11. West County Bank agrees to lend Drake Builders Company $100,000 on January 1. Drake Builders Company signs a $100,000, 6%, 6-month note. The entry made by Drake Builders Company on January 1 to record the proceeds and issuance of the note is Notes payable 100000 B)cash 100000 notes payable 100000 12. From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that B) interest must be paid on a periodic basis regardless of earnings.

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Assets= current liabilities + long term liabilities + shareholders' equity net income= revenue - expenses 1-made an adjusting entry to record interest on a short term note payable. 2-made a monthly installment payment of a fully amortizing,six-month, interest-bearing installment note payable. 3-entered into a contractual commitment with a television network to purchase sixty 30-second commercials to be aired in each of the next 18 months. the cost is $75,000 per month, payable on the last day of the month in which the commercial aired. 4-came within 12 months of the maturity date of a note payable originally issued for a period of 18 months. 5-made an adjusting entry to accrue the monthly interest payable on a long-term mortgage. 6-estimated the income taxes expense relating to the month's business income. indicate the effects on the accounting equations using i for increase, d for decrease and ne for no effect. thx in advanced!! *****indicate the effects***** on the accounting equations using i for increase, d for decrease and ne for no effect. it's either i, d or ne for the balance sheet and income statement.......... helloooooooooooooooooooooooooo!!!!! !!!!!!!!!!! :(

1-Made an adjusting entry to record interest on a short term note payable Expense (I); Current liability (I); Shareholders' Equity (D); NE for everything else 2-Made a monthly installment payment of a fully amortizing,six-month, interest-bearing installment note payable Expense (I); Curr. liab. (D); SE (D); Current asset (D); NE for everything else 3-Entered into a contractual commitment with a television network to purchase sixty 30-second commercials to be aired in each of the next 18 months. The cost is $75,000 per month, payable on the last day of the month in which the commercial aired Curr. asset (I); Curr. liab. (I); L-T liab. (I); NE for everything else 4-Came within 12 months of the maturity date of a note payable originally issued for a period of 18 months. Curr. liab (I); L-T liab. (D); NE for everything else 5-Made an adjusting entry to accrue the monthly interest payable on a long-term mortgage Expense (I); Curr. liab. (I), SE (D); NE for everything else 6-Estimated the income taxes expense relating to the month's business income Expense (I); Curr. liab. (I); SE (D); NE for everything else

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A) jose has a mortgage at 9.5% compounded semi-annually, amortized over 25 years. if jose decides to change his mortgage payments from 1000 a month to $500 every 2 weeks, what will be the effect on his amortization period? b) jeremiah has a long term savings plan. for 10 years he has been investing $150 a month, earning 4.25% interest compounded monthly. how much more would he have saved if he had chosen to make deposits of $200 a month?

DISCLAIMER: This is strictly the approach I came up with after thinking about it for a few hours. As such, there may be small errors...things I didn't see...Things just plain missed... That being said, at least this should give you an outline on how to proceed...Hope this helps \\\\\\\\\\\\\ a) still thinking about how to precisely quantify the effect, but the amortization period would definitely be shorter for the 500 every 2 weeks (13000 a year instead of 12000) So, here's how I'd start this...He pays the thing off over 25 years with mortgage payments of 1000 a month...so he pays a total of 300000. Now, P(t) = P(0)*(1+0.095/2)^(2t) holds if he were making no payments...Now, we know that after 300 months (25 years), he's paid the whole thing off... I will instead define P(t) to be the amount left to pay off... So P(1/2) = (P(0) - 6000)*(1+0.095/2) And up to that point, P(1/12) = P(0) - 1000 P(2/12) = P(1/12) - 1000 ... P(5/12) = P(4/12) - 1000 = P(0) - 5000 P(1) = (P(1/2) - 6000)*(1+0.095/2) = P(0)*(1+0.095/2)^2 - 6000*(1+0.095/2)^2 - 6000*(1+0.095/2) ... P(25) = P(0)*(1+0.095/2)^50 - Sum_{k=0 to 49} 6000*(1+0.095/2)^(k) = 0 The reason this is 0 to 49 is I assume that the last payment is made at precisely the moment before interest compounds Now , to do this, simply note that Sum_{k=0 to 49} 6000*(1+0.095/2)^(k) = 6000* Sum_{k=0 to 49} (1+0.095/2)^(k) And of course you evaluate this using the summing formula for a finite geometric sum: Sum_(k=1 to n) x^k = (1-x^(k+1)) / (1-x) let x = (1.0475) and this sum comes out to about 193.24 Plug this in, and you get around 1159440 (you should check these numbers on a calculator, by the by) Now, 1.0475^50 = 10.1789 So P(0)*(1+0.095/2)^50 = Sum_{k=0 to 49} 6000*(1+0.095/2)^(k) and thus P(0) = 113906 Now, we have an idea of how to approach this thing... I will assume 52 weeks in a year, 26 per 6 months, so there will be 13 payments made per 6 months. P(1/2) = (P(0) - 6500)*1.0475 P(1) = (P(1/2) - 6500)*1.0475 = P(0)*1.0475^2 - 6500*1.0475^2 - 6500*1.0475 ... Now, the goal is to find P(t) = 0 First off, what is P(t)? P(t) = P(0)*1.0475^(2*t) - Sum_(k = 0 to 2*t-1) 6500*1.0475^k Now, the goal is to find t such that P(t) = 0 Numerically, this can be done...Analytically, I'm honestly not sure how. Why? Here's what you've got: P(0)*1.0475^(2t) = Sum_(k = 0 to 2*t-1) 6500*1.0475^k = 6500* Sum_(k = 0 to 2*t-1) 1.0475^k = 6500* (1-1.0475^(2t)) / (1-1.0475) So now, we have: P(0)*1.0475^(2t) * (1-1.0475) = 6500*(1-1.0475^(2t)) P(0)*1.0475^(2t) * (1-1.0475) + 6500*1.0475^(2t) = 6500 P(0)*1.0475^(2t) - P(0)*1.0475^(2t+1) + 6500*1.0475^(2t) = 6500 Now use a few other tricks: (P(0) - 1.0475*P(0) + 6500) * 1.0475^(2t) = 6500 1.0475^(2t) = 6500 / (P(0) - 1.0475*P(0) + 6500) Denote Log_a(b) to be the "log base a of b" 2t = Log_1.0475(6500 / (P(0) - 1.0475*P(0) + 6500)) Use P(0) = 113906 Now, 6500 / (P(0) - 1.0475*P(0) + 6500) is around 5.96623, and Log_1.0475(5.96623) is around 38.4886 So 2*t is around 38.5, and thus it appears that the amortization time would be cut down to 19 years and 3 months, give or take...In any case, within 19 and a half years, it should be paid off... b) 4.25% interest compounded monthly, eh? Well, let r be the interest rate, P be the initial principal, t the time in years, n the number of times per year interest compounds On just a strictly new investment, P(t) = P*(1+r/n)^(nt) Now, this is asking a different question. 10 years go by with this guy putting in $150 a month. P(0) = 150, P(1/12) = 150*(1+.0425/12) + 150 P(2/12) = P(1/12)*(1+.0425/12) + 150 And in general, letting k be a natural number, then P((k+1)/12) = P(k/12)*(1+.0425/12) + 150 These numbers are unfortunately approximations up to machine precision... We now put all of this together, for k = 120 Let's see if we can't devise a pattern first: P(1/12) = 150*(1+0.0425/12) + 150 P(2/12) = 150*(1+.0425/12)^2 + 150*(1+0.0425/12) + 150 ... P(10) = Sum_{k = 0 to 120} 150*(1+0.0425/12)^k = 22610.35 Now, if instead, he had chosen to deposit $200 a month, the analysis is precisely the same, except that instead of 150, the sum would have a 200 in its place... So let's call P' the amount for 200 a month P'(10) = Sum_{k = 0 to 120} 200*(1+0.0425/12)^k = 30147.14 Overall net gain? Just the difference: $7536.79

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A) jose has a mortgage at 9.5% compounded semi-annually, amortized over 25 years. if jose decides to change his mortgage payments from 1000 a month to $500 every 2 weeks, what will be the effect on his amortization period? b) jeremiah has a long term savings plan. for 10 years he has been investing $150 a month, earning 4.25% interest compounded monthly. how much more would he have saved if he had chosen to make deposits of $200 a month?

Jose will be upside down in his mortgage at 9.5%. He will prob be foreclosed on in 6 months so it won't matter after that. In theory, he should be able to reduce the term of his mortgage roughly by 10 years by splitting payments. Jeremiah should have got financial advice. The 4.25% will have been eaten by inflation, the declining dollar, plus state and federal income taxes on the annual interest. He should have put the money in a ROTH IRA and indexed it with the S&P 500. This should help. http://www.bankrate.com/brm/news/sav/2006savmg/savings-calc.asp