I'd go with Bob's suggestion that the rate is probably 5.575%. On your
document, I would think they've used 5.6% as a convenience. As the actual
rate used seems to be lower, you're not losing :-)

--
Andy Wiggins FCCA
www.BygSoftware.com
Excel, Access and VBA Consultancy
-

"Ron" wrote in message
...

"RWN" wrote in message
...
What is the amortization period of the mortgage and the conversion
periods
(i.e. is the
rate compounded monthly/semi annually...).


--
Regards;
Rob
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"Ron" wrote in message
...
Hi, is this the correct formula to calculate mortgage interest on an
interest only mortgage?
=SUM((B3*B4)/12)*-1 where B3 is the mortgage and B4 is the interest
rate.
Thanks Ron


Does it matter what the amortization period of the mortgage is on an
interest only mortgage? It has about 6 years left until the first
endowment
is paid. The interest is calculated daily. I wondered why the mortgage
company had a different monthly payment from me. As I said in an earlier
post they must use a different formula.
Ron