Hi All
I recently received a term sheet which stipulated 25y amort for the first 3 years (simple enough) and then "after year 3, the monthly payment will annually step up to payoff the loan in 20 years" (see yellow highlighted instructions and cell D58 where the different amort period begins).
I am struggling to model the step up correctly (currently the pmt's are all constant rather than lower in the beginning and then higher towards the end as they step up) - would an experienced excel user please help me out here and provide some insight into which formula(s) are best to use to handle a case like this?
Also - feel free to share any other insights / recommendations you guys have (I may have made a mistake or two).
Thanks in advance!
| Attachment | Size |
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| wso_debt_help.xls 84.5 KB | 84.5 KB |
so what you would have to do here is basically take at month 36 that balance, use that as your new beginning balance and then do a 22 year amort with the same terms, then blend the sheets.
Easy
have a line for amort on the spreadsheet, then make another box for step up. Then for your inputs on your amort table page use and IF(month>=step up,step up amort,25-year amort). You would use this for the year input on the PMT. Copy and paste down the column.
Not enough information. Just ask the lender for their amortization schedule or their model for the simplest solution.
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