Mortgage Loan Balance After n Payments

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on

Jul 24, 2020, 6:28:07 PM

Created by

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Jul 16, 2019, 1:13:47 AM

L o a n B a l a n c e = L \cdot \frac{{(1 + \frac{r}{12})}^{n} - {(1 + \frac{r}{12})}^{p}}{{(1 + \frac{r}{12})}^{n} - 1}

$Loan Balance = "L" *[(1+ r /12)^ "n" - (1+ r /12)^ "p" ] / [(1+ r /12)^ "n" - 1]$

(L) Loan Amount

$(L)"Loan Amount"$

(r) %interest

$(r) "%interest"$

(n) Duration Months

$(n) "Duration Months"$

(p) Interim Months

$(p) "Interim Months"$

Inputs

The input parameters are:

L - The Principal loan amount, the amount originally financed
n - The number of months in the duration of the original loan; for a 30 year loan that is $n = 30 \cdot 12 = 360$ $n = 30 *12 = 360$
p - The number of months into the loan, the number of monthly payments that have been made to date
r -The annual interest rate entered as a percent; i.e., enter 4.5 for an interest rate of 4.5 %.

Usage

This equation might be simply used just to give a homeowner an idea how much there still is to be paid on their mortgage loan.

The equation would be useful in analysis of refinancing options, first computing with this equation how much will have to be refinanced at the present point into the loan. The output from this equation would then serve as the financed principal for calculating refinancing options.

Mortgage Loan Balance After n Payments

Inputs

Usage

See also

Datasets

Equations and Data Items

Calculators

Equations and Data Items

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