XCEL 2 calculate week or bi-weekly accel. mortgage payment
I need a spreadsheet to help calculate what the interest cost and remaining
balance of a mortgage would be after a certain period 9similar to an
amortizationtable). Available templates do not offer the option to enter my
own payment and the frequency of the payment i.e. monthly, bi-weekly or
weekly.
I need to be able to enter my own payment amount and the frequency 12,24,26,52
I know that since that is what I wrote in my updated posting,
which you quote. But that does nothing to improve my understanding
of the difference between accel v. regular weekly or biweekly
payment schedules. No matter: I believe I discovered the answer myself.
Based on one online Canadian calculator, the rate() computation above
(and in my earlier posting) is useful for computing pmt() for "regular"
periodic payments. Thus, regular weekly/biweekly payments are
computed using normal amortization, assuming the payments go on
for the full loan term.
With accel weekly/biweekly schedules, the payment amount seems
to be based on the total monthly payments for 13 months (i.e. a year
plus one month), based the original loan term (e.g. 25 yr). That total
is divided by the number of accel payments (26 or 52). The accel
schedules are marketed as allow[ing] you to make the equivalent of
13 months of payments over a 12-month period -- similar to the way
semimonthly payments (at least) are marketed in the US. The effect
is to greatly reduce the total interest paid over the life of the loan,
as well as to shorten the actual length of the loan.