Most of my simulations occur in my head. As in simulating what it will be like to be job-free someday, haha.
When I bought my house, though, I did figure out how to do all the amortization tables myself so that I could compare all the different rates and points and stuff, along with figuring out early payment payoff periods. l felt way more in control having the same level of information available to me that the mortgage broker did.
It’s really nice when comparing quotes for buying down a rate, or looking at the impact of additional payments. It’s also incredibly easy to throw together. For anyone interested:
payment = PMT(mortage rate/12, mortgage term * 12, -initial principle)
new principle = prev principle - principle payment
Throw that into a spreadsheet and drag down. Add a SUM() to figure out total interest paid or whatever. I have a VLOOKUP() to calculate interest for the current year for tax planning purposes, for example.
Maybe I’ll start an unofficial weekly post about various calculations I have in my spreadsheet. I have something like 30 tabs, so surely something there is interesting to others.
Most of my simulations occur in my head. As in simulating what it will be like to be job-free someday, haha.
When I bought my house, though, I did figure out how to do all the amortization tables myself so that I could compare all the different rates and points and stuff, along with figuring out early payment payoff periods. l felt way more in control having the same level of information available to me that the mortgage broker did.
It’s really nice when comparing quotes for buying down a rate, or looking at the impact of additional payments. It’s also incredibly easy to throw together. For anyone interested:
PMT(mortage rate/12, mortgage term * 12, -initial principle)(mortgage rate/12) * remaining principlepayment - interestprev principle - principle paymentThrow that into a spreadsheet and drag down. Add a
SUM()to figure out total interest paid or whatever. I have aVLOOKUP()to calculate interest for the current year for tax planning purposes, for example.Maybe I’ll start an unofficial weekly post about various calculations I have in my spreadsheet. I have something like 30 tabs, so surely something there is interesting to others.