Three compelling reasons to buy MORTGAGE2 PRO
Do you have a mortgage or work in the mortgage industry?
Then MORTGAGE2 PRO is a MUST HAVE for you!
Here are three reasons why you should invest $49.00 in MORTGAGE2 PRO amortization software.
1.. The software allows you to calculate any one of the four important variables if you have the other three.
2.. The software allows you to choose the exact day monthly payment schedule which bases the interest calculations on the actual number of days between payments. All financial calculators assume the month is 30.416666 days due to the algebraic equations. The software considers a 28, 29, 30 and 31 day month but also allows longer increments of time between payments.
3.. The software allows you to calculate the correct Interest Rate Differential (IRD) “penalty” which is common in Canada. The IRD “penalty” is the amount you are charged to compensate your Lender for early release from a mortgage term.
Here is an example, illustrating reason #1, a unique software feature that I call the 3 out of 4 calculation. I use a monthly payment, non collateral mortgage (monthly compounding) because its easy for a novice to plug the numbers in any financial calculator to verify. Monthly compounding is also the way most American mortgages are calculated. Automobile loans and personal loans are also calculated this way in both Canada and the USA. The program will do semi-annual compounding or monthly compounding by a simple click of a button. I purposely chose monthly compounding as an example to cover a larger audience in North America.
If you took out a mortgage for $500,000 at an annual interest rate of 3% amortized for 25 years then any standard “run of the mill” hand held financial calculator will calculate a blended monthly payment of $2371. All dollar amounts are rounded to the closest dollar to keep the numbers easy to read.
- If you could afford a monthly payment of $2500 would you be able to easily calculate that the amortization period would be reduced to 23.13 years?
- What if you decided to pay the $2500 per month but remain with a 25 year amortization period at a 3% rate, you could then borrow $527,591.
- What if the rate was dropped to 2.5% and you kept the $2500 per month payments and an amortization period of 25 years, you could then borrow more, $528,526.
- Legal documents can be confusing, usually written in legalese; often it is difficult to QUICKLY determine the annual interest rate. If you were scanning a mortgage document for a $500,000 mortgage (or a loan) amortized for 25 years and monthly payments of $2500 then you would be able to quickly calculate the annual interest rate is 3.4884%.
Over the years I have accumulated hundreds of dollars worth of software and financial calculators and none will perform the 3 out of 4 feature. If anyone can prove otherwise they can have a gratis copy of my MORTGAGE2 PRO software.