calculate the value of a mortgage purchased at a discount
How do I calculate the rate of return on a mortgage purchased at a discount?
ex a mortgage has a intrest rate of 8% 100,00 prinipal bal. 18 years remaining . I pay 85,000 what the current intrest rate ? |
=RATE(18*12,PMT(8%/12,18*12,-100000),-85000)*12
=10.46% And the way to verify if your rate computed above is correct is to have the same monthly instalement as if you had obtained a loan of 85000 @ 10.46% as would be of a 100,000 loan @ 8% for 18 years =pmt(10.46%/12,18*12,-85000) = 874.96 =PMT(8%/12,18*12,-100000) = 874.96 "Jim@cch" wrote in message ... How do I calculate the rate of return on a mortgage purchased at a discount? ex a mortgage has a intrest rate of 8% 100,00 prinipal bal. 18 years remaining . I pay 85,000 what the current intrest rate ? |
All times are GMT +1. The time now is 01:18 AM. |
Powered by vBulletin® Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
ExcelBanter.com