Residence Personal loan Refinance Calculations in MS Excel

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Refinancing a dwelling financial loan can save money if you know how to calculate the information dependent on the alternatives delivered by a lender specially with regard to the refinance fees and regular monthly savings.
Robert has a comparable trouble and let’s locate a solution. Of study course, the side-consequences are MS Excel discovering!
Listed here is Robert’s query:
“You have been dwelling in the house you bought 10 years ago for $300,000. At that time, you took out a financial loan for 80% of the house at a fastened level fifteen-12 months financial loan at an annual said level of nine%. You have just paid out off the one hundred and twentieth regular monthly payment. Desire charges have in the meantime dropped steadily to six% for each 12 months, and you consider it is at last time to refinance the remaining harmony. But there is a capture. The rate to refinance your financial loan is $four,000. Should you refinance the remaining harmony? How much would you save/shed if you determined to refinance? “


  1.   Two years ago, you purchased a $20,000 car, putting $4,000 down and borrowing the rest. Your loan was a 48-month fixed rate loan at a stated rate of 6% per year.You paid a non-refundable application fee of $100 at that time in cash. Interest rates have fallen during the last two years and a new bank now offers to refinance your car by lending you the balance due at a stated rate of 4% per year. You will use the proceeds of this loan to pay off the old loan. Suppose the new loan requires a $200 non-refundable application fee. Given all this information, should you refinance? How much do you gain/lose if you do?was very helpful.

    your post was very helpful, i had difficulty to figured out this problem.
    i want you to tell me in this exercice that is almost the same to what you just have done except the fee non refundable. should i add the fees refundable to the cost of the car.

  2. thanks so much.. it was most helpful

  3. Thank you! Great info

  4. A shortcut for finding the remaining balance of the loan could be the use of excel formula cumprinc(). In this case =CUMPRINC(9%/12;15*12;240000;1;120;0) calculates the principal that has been already paid off, e.g. $ 122 734.46. Hence the remainig balance would be $240 000 – $ 122 734.46=$117 265.54. The same as you got in your solution.


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