Skip to content
BOL Conferences Top Gun 23
Thread Options
#1577262 - 07/13/11 02:52 PM amoritzation schedule
komply Offline
Gold Star
Joined: Apr 2008
Posts: 475
NJ
This may sound dumb, but if I give someone an amoritzation schedule, shouldn't the last payment zero the balance out or be reflected in the last payment to show that the balance is zero? Our system conflicts by leaving a balance after the last payment and it just doesn't seem right to me or am I all wrong??

Thanks

Return to Top
Lending Compliance
#1577419 - 07/13/11 05:35 PM Re: amoritzation schedule komply
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
It could be your system telling you that those payments at that rate will not "am" out by maturity, and it adds a final balloon payment of the remaining.

Could be the way the loan input set up. Our am software will also add another payment when loan amount, number of payments and payment amount don't am out by that maturity date. We usually find it is because we've told it we want the payments to be a specific amount rather than letting the software calculate the payment amount, thus resulting in the addition of one final payment of the balance due.
_________________________
Just working here until I get my letter from Hogwarts.

Return to Top
#1577591 - 07/13/11 08:14 PM Re: amoritzation schedule HRH Okie Banker
komply Offline
Gold Star
Joined: Apr 2008
Posts: 475
NJ
ok

Return to Top
#1578305 - 07/14/11 08:36 PM Re: amoritzation schedule komply
Mike Baker Offline
100 Club
Mike Baker
Joined: Dec 2002
Posts: 192
Tennessee
Just wondering if you have cross checked your system's payment calculation with an HP or with EXCEL. I know that with the parameters that have been set in our ARTA system [which is to be replaced later this month] I cannot obtain a true "mortgage style" amortized payment; in our case, the derived P&I is somewhat higher, which results in a slighly more rapid amortization.
I have created my own EXCEL spreadsheet amortization, and usually the final balance is shown at $0, or is within a very few cents if there is any difference due to rounding.
_________________________
"When you believe He's all you need,that will be your defining moment." [from "Defining Moment" Newsong, Sheltering Tree CD]

Return to Top
#1578309 - 07/14/11 08:38 PM Re: amoritzation schedule Mike Baker
komply Offline
Gold Star
Joined: Apr 2008
Posts: 475
NJ
Thanks for the info

Return to Top

Moderator:  Andy_Z