Mortgage amortization table

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Mortgage amortization table

Marty Fix
Hi all,
        I am trying to setup a mortgage in Gnucash 2.2.8, but cannot seem to  
get the correct values for principal and interest.  The values I am  
using in the loan druid is

Amount: 101,000.00
Interest Rate: 6.875%
Start Date: 7/12/2001
Length: 180 Months
Repayment: Starting 9/1/2001 on the 1st of every month

Every other mortgage calculator I use (including my bank)  says the  
first payment on 9/1/2001 is $900.78 322.13 Principal and 587.65  
Interest
The loan druid gives me a first payment on 9/1/2001 of  
900.77 323.97 Principal and 576.80 Interest

I can understand the .01 payment difference but not the large  
difference in principal and interest.  Am I using the druid wrong, or  
are the calculations in error?

                                Marty
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Re: Mortgage amortization table

Dennis Muhlestein
Marty Fix wrote:

> Hi all,
> I am trying to setup a mortgage in Gnucash 2.2.8, but cannot seem to  
> get the correct values for principal and interest.  The values I am  
> using in the loan druid is
>
> Amount: 101,000.00
> Interest Rate: 6.875%
> Start Date: 7/12/2001
> Length: 180 Months
> Repayment: Starting 9/1/2001 on the 1st of every month
>
> Every other mortgage calculator I use (including my bank)  says the  
> first payment on 9/1/2001 is $900.78 322.13 Principal and 587.65  
> Interest
> The loan druid gives me a first payment on 9/1/2001 of  
> 900.77 323.97 Principal and 576.80 Interest
>
> I can understand the .01 payment difference but not the large  
> difference in principal and interest.  Am I using the druid wrong, or  
> are the calculations in error?

Have you tried adjusting the point at which the interest is collected?
Seems I recall having some settings for beginning, end, etc of period.

-Dennis
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Re: Mortgage amortization table

Tim Wunder (Lists)
In reply to this post by Marty Fix
On Thursday 18 December 2008 11:29:51 pm Marty Fix wrote:

> Hi all,
> I am trying to setup a mortgage in Gnucash 2.2.8, but cannot seem to
> get the correct values for principal and interest.  The values I am
> using in the loan druid is
>
> Amount: 101,000.00
> Interest Rate: 6.875%
> Start Date: 7/12/2001
> Length: 180 Months
> Repayment: Starting 9/1/2001 on the 1st of every month
>
> Every other mortgage calculator I use (including my bank)  says the
> first payment on 9/1/2001 is $900.78 322.13 Principal and 587.65
> Interest
> The loan druid gives me a first payment on 9/1/2001 of
> 900.77 323.97 Principal and 576.80 Interest
>
> I can understand the .01 payment difference but not the large
> difference in principal and interest.  Am I using the druid wrong, or
> are the calculations in error?
>
Is this what you're seeing?
http://bugzilla.gnome.org/show_bug.cgi?id=506807

Tim
--
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KDE: 3.5.8-1 Fedora
 11:40:01 up 18 days, 22:32,  2 users,  load average: 0.80, 0.69, 0.56
"It's what you learn after you know it all that counts" John Wooden

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Re: Mortgage amortization table

Marty Fix
Tim,
        Yes, now that I look at it closer, that is what I am seeing.  
Essentially the first payment split is missing, it is starting with  
the second payment.


On Dec 19, 2008, at 11:43 AM, Tim Wunder wrote:

> On Thursday 18 December 2008 11:29:51 pm Marty Fix wrote:
>> Hi all,
>> I am trying to setup a mortgage in Gnucash 2.2.8, but cannot seem to
>> get the correct values for principal and interest.  The values I am
>> using in the loan druid is
>>
>> Amount: 101,000.00
>> Interest Rate: 6.875%
>> Start Date: 7/12/2001
>> Length: 180 Months
>> Repayment: Starting 9/1/2001 on the 1st of every month
>>
>> Every other mortgage calculator I use (including my bank)  says the
>> first payment on 9/1/2001 is $900.78 322.13 Principal and 587.65
>> Interest
>> The loan druid gives me a first payment on 9/1/2001 of
>> 900.77 323.97 Principal and 576.80 Interest
>>
>> I can understand the .01 payment difference but not the large
>> difference in principal and interest.  Am I using the druid wrong, or
>> are the calculations in error?
>>
>
> Is this what you're seeing?
> http://bugzilla.gnome.org/show_bug.cgi?id=506807
>
> Tim
> --
> Fedora Core release 6 (Zod), Linux 2.6.22.14-72.fc6
> KDE: 3.5.8-1 Fedora
> 11:40:01 up 18 days, 22:32,  2 users,  load average: 0.80, 0.69, 0.56
> "It's what you learn after you know it all that counts" John Wooden
> _______________________________________________
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> https://lists.gnucash.org/mailman/listinfo/gnucash-user
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> Please remember to CC this list on all your replies.
> You can do this by using Reply-To-List or Reply-All.

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Re: Mortgage amortization table

Dennis Muhlestein
Marty Fix wrote:
> Tim,
> Yes, now that I look at it closer, that is what I am seeing.  
> Essentially the first payment split is missing, it is starting with  
> the second payment.

Another issue I had after trying unsuccessfully today to get the
Mortgage druid to create an amortization table that was correct for my
mortgage was adding additional principle.

Each months interest should be calculated on the existing balance of the
loan.  The difference between that and the original calculated monthly
payment is the amount applied to principle.  Then, you should have the
option of adding additional principle.  The sum of the calculated
principle + any added principle subtracted from the balanced gives the
next months balance.

There is no way (unless very recently added) to get at an account
balance to use in the scheduled transactions so I don't think there is a
way to get the correct amounts calculated each month.  For now, I set up
a spreadsheet with an amortization table that shows the principle and
interest each month.  Then, my scheduled transaction in GC just has two
variables, principle and interest.

Perhaps a future version of GC will have a nicer amortization feature.

-Dennis
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