User Manual

CLEAR
20
8
6.75
0.56 Monthly interest rate (into i).
200132.06
200,132.06 Loan amount (into PV).
0
-2,031.55 Monthly payment on existing mortgage (calculated).
10
0.83 Monthly interest on wrap-around.
300000
-300,000.00 Amount of wrap-around (into PV).
3,585.23 Monthly payment on wrap-around (calculated).
0
1,553.69 Net monthly payment received (into PMT).
200132.06
-99,867.94 Net cash advanced (into PV).
12
15.85
Nominal yield (IRR) to lender (calculated).
Sometimes the wrap around mortgage will have a longer payback period than the
original mortgage, or a balloon payment may exist.
where:
n
1
= number of years remaining in original mortgage
PMT
1
= yearly payment of original mortgage
PV
1
= remaining balance of original mortgage
n
2
= number of years in wrap-around mortgage
PMT
2
= yearly payment of wrap-around mortgage
PV
2
= total amount of wrap-around mortgage
BAL = balloon payment