Mortgage Math Q - Given fixed principal pmt, what is equivalent schedule?
I'm having a brain fart.
- $30,000,000 loan
- 6% interest rate
- $60,000 monthly principal payments, fixed amount
I'm trying to answer the question "what is the equivalent amortization schedule of this?" Aka, 20 years, 25 years, 30 years? i guess it changes over time as the loan balance decreases, but what would it be out the gates at Y0?
I know that the mortgage constant = 8.40%, but am stuck.
- Annual Interest = 6%*$30M = $1.8M
- Annual Principal = $720,000
- Annual Debt Service = $2,520,000
- Debt Constant = $2.52 / $30M = 8.4%
Assumenda ducimus aut voluptatem sit accusantium suscipit iste. Beatae qui eligendi omnis et molestiae corporis facilis aliquam. Consequatur deserunt id dolor aut distinctio earum.
Molestiae magnam odit aut enim. Est tempora quas est praesentium est nihil. Quos laborum nam placeat quia enim cumque rerum. Quam omnis vel est ut.
Odio reiciendis praesentium odio unde. Qui accusantium et dolores sunt exercitationem.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...