Question 175070: Many people can no longer afford their mortgage payment and I want to help them find a principal and interest payment they can afford. Using the current income and liabilities I can calculate the amount of payment they can afford. Now I am trying to determine the interest rate associated with this paymentand determine what is the best corse of action for them. For example, The borrower can afford a monthly payment of $2,362.00. My options are to either change their interest rate, make the term of the loan 360 OR 480 payments, forgive some of the principal or provide a combination of all three options. They currently owe $415,000 on the loan and their payment is $3112.50. I need a series of formulas to determine which is best for the borrower.
Answer by ankor@dixie-net.com(22740)   (Show Source):
You can put this solution on YOUR website! These formulas are cumbersome to calculate on paper. You would be better served
if you use a calc like a Ti83, financial application. With this you can enter
and combination of interest rate, loan amt, no. of payments, payment amt and
immediately determine what you want to know.
:
For instance if you have loan of 415,000 with an interest rate of 5%, and the
monthly payment has to be 2362, enter these values and and find the number
payments required to pay it off. About 317 payments or about 26 yrs. Or any
other combination of interest, payment amt, time, etc can be easily determined.
:
With practice you can find out anything you want about a mortgage in minutes
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