17BII, 27S: doing TVM calculations inside solver equations

05012019, 03:36 PM
Post: #7




RE: 17BII, 27S: doing TVM calculations inside solver equations
(05012019 02:28 PM)Csaba Tizedes Wrote: Two notes to this: Sounds like loans are handled a bit differently between Hungary and the US, then. Whenever I make an extra principalonly payment (which I've done a couple of times), the outstanding balance is directly reduced, but the payment amount doesn't change. This means that the loan will be paid in full sooner, and thus collect less total interest. When I did this for my mortgage, I had the option of having the loan reamortized to the same length, which would have lowered the monthly payment, but would not have reduced the total interest paid by as much as leaving the payment amount at its original higher value, and settling the loan earlier. 

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