Very OT, I know, but judging by my experience of the combined wisdom of the
>contributors to this group, someone must have the answer for this one, so
>apologies in advance...
>
>What si the formula for calculating the monthly payments for an
>interest-only-type loan/mortgage, given the period (in years or month), the
>interest rate, and the amount borrowed?
>
>TIA.
>
Interest only = ammount * rate / 12
This is a close approxamation, some lendors caculate based on the balance at a certain date, and are charging interetes in the latter part of the year on repaid monies.
The timespan does not effect the payments on an interest only loan, as you are not repaying capital.
When I was at a certain high street banks mortguage center, the exact method of doing this caculation took IT over a year to understand, its voodo.
Rick