Comments on: How to compute for the monthly amortization payment without a mortgage calculator

By: Jay Castillo

Jay Castillo — Mon, 08 Feb 2010 09:19:01 +0000

You’re welcome Gil! Glad to be of help!

By: Gil M. Banaria

Gil M. Banaria — Thu, 04 Feb 2010 09:04:59 +0000

Jay, this is very hepful. The key is that you’ve made the approach quite simple and backed it up with an illustration without hifallutin’ jargon. I’ll try it in my usual lot sales or house-and-lot sales. Thanks!

By: amortization formula

amortization formula — Sun, 27 Dec 2009 04:54:04 +0000

Agree too, many auto calculator online but no one explain for the details and show some example like your. this is very easy to understand and I could calculate for my own and print out to talk with banker for the point I need. Such a nice post.

By: Bryan Uy

Bryan Uy — Sun, 06 Dec 2009 14:38:26 +0000

Thanks again Jay!

I know there are several online mortgage calculators out there but I love this as I can put this on my mobile phone or print it and put it in my wallet. I’m gonna do this tomorrow so I will be forced to look for great properties! I see potential deals already but without this tool, one wouldn’t be ablt to determine if it really is a great one!

Thanks again!
Bryan Uy´s last blog ..Invest in Cash in a Flash: A P300k Package for only P750 by Mark Victor Hansen and Robert G. Allen

By: Jay Castillo

Jay Castillo — Tue, 17 Nov 2009 05:51:14 +0000

Hi Kevin, I agree. Thanks for visiting!

By: Jay Castillo

Jay Castillo — Tue, 17 Nov 2009 05:50:00 +0000

Thanks Menandro! By the way, you have a wonderful site!

By: Jay Castillo

Jay Castillo — Tue, 17 Nov 2009 05:47:15 +0000

Hi Kamotechunks, the standard practice would be to base the commission on the selling price which is 1M in your example.

By: Jay Castillo

Jay Castillo — Tue, 17 Nov 2009 05:44:18 +0000

Hi Liza, yes, banks also use this as their standard way of computing for the monthly amortization that includes principal and interest. You’re welcome!

By: Kevin Simpson

Kevin Simpson — Wed, 11 Nov 2009 15:42:51 +0000

Mortgage calculator is something that really helps people to make their finance program before buying a house

By: KamoteChunks

KamoteChunks — Wed, 11 Nov 2009 14:10:02 +0000

tnx Jay ^_^. tnx for the encouraging words, yes im 120% sure that im going to venture this kind of investment. jay tanung ko lang tungkol sa comition ng brokers.. i understand that your going to give the broker 5% to 6% commission on each transaction. pag rent to own nalaman ko din na pwede mo bigay sa kanila ung 1 month rent..

eto question ko, pano pag full payment ung piniling option nung costumer. example.. costumer paid 1M for a house u bought for a dp of 120k (600k auction price) an then i pay the bank 480k remaining balance, 50k in repairs. where would i base the commission? from the 350k that i earned? or from the 1m selling price?

Tnx in advance.
GOD BLESS!

By: How to calculate for the amortization factor | Foreclosure Philippines

How to calculate for the amortization factor | Foreclosure Philippines — Tue, 10 Nov 2009 22:29:19 +0000

[...] my previous post: How to compute for the monthly amortization payment without a mortgage calculator, I showed how I compute for the monthly amortization payment by hand. Tyrone of Millionaire [...]

By: Jay Castillo

Jay Castillo — Tue, 10 Nov 2009 10:40:43 +0000

Hi Kamotechunks! You’re welcome and i’m glad to know you are going to start in real estate investing. Go for it!!!

The best example would probably be my first rent-to-own deal which I bought last February 2009. I bought it from an auction at about 40% below market value. I then fixed it up and sold it through a rent-to-own scheme. It now produces about 5K monthly positive cashflow/passive income. This is the same deal that I talked about when Trace Trajano interviewed me and the audio recoding is included in the CD that Trace was supposed to give away which I mentioned here:http://www.foreclosurephilippines.com/2009/09/have-you-acquired-your-first-deal.html

I will be describing this deal in greater detail in a project I am working on right now.

By: Jay Castillo

Jay Castillo — Tue, 10 Nov 2009 10:24:09 +0000

Hi Tyrone, if you don’t have access to the amortization factor table, you can compute for it as well. The formula I use is as follows:

Amort factor=I/(1-(1+I)^-M)
where
I = the monthly interest rate or annual interest rate divided by 12
M = the loan payment term in months

Of course I only use this within excel as I would not want to compute this by hand. I would still prefer to keep a copy of the amort factor table in my wallet so I don’t need to bring my laptop with me everywhere, and I can compute by hand or use the calculator on my cellphone. =)
I believe there is also a built in function in excel that can do this calculation but I haven’t tried that yet. I’ll illustrate this in another post.

By: Menandro

Menandro — Tue, 10 Nov 2009 01:26:00 +0000

Great passive income lessons here…

Thanks Jay!
Menandro´s last blog ..Your Passive Income Passion: Opportunities to Have a Better Life

By: liza lavin

liza lavin — Tue, 10 Nov 2009 01:21:37 +0000

Jay, this is standard, right? So all banks use too? Thank you once again Jay!

By: KamoteChunks

KamoteChunks — Mon, 09 Nov 2009 13:30:28 +0000

tnx for the information Jay.. as always, your a big help… im going to do real estate investing next year.. jay can u give us one example of your deals? tnx in advance.. GOD BLESS.

By: Millionaire Acts

Millionaire Acts — Mon, 09 Nov 2009 10:19:53 +0000

Nice tip Jay! How about if we don’t have access to the amortization factors table? Is there a way to compute it?
Millionaire Acts´s last blog ..Manila Bulletin Blog-O-Rama Features Millionaire Acts

By: uberVU - social comments

uberVU - social comments — Mon, 09 Nov 2009 06:48:27 +0000

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Mon, 09 Nov 2009 05:34:03 +0000

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By: Jay Castillo

Jay Castillo — Mon, 09 Nov 2009 03:06:12 +0000

Hi Liza. Yes, this will also work if you are the seller. Just use the annual interest rate you will give your tenant-buyer, the length of the rent-to-own agreement, and of course your selling price less the downpayment/option money.