Last week when we released our unique online real estate calculator (it teaches as it calculates), we made it clear that we are open to suggestions from users for additional calculations they would like to see added to the program. Well, we stayed true to our word. Earlier this week a user did in fact suggest two computations that we did add to the Amortization category. Namely, computations for an “interest-only mortgage”, and another for a “short term mortgage”. Here’s what they enable you to do.
The interest-only mortgage calculation will enable you to determine the monthly mortgage payment without any reduction for principal. In this case, only the interest is paid monthly and the loan is not reduced.
The short term mortgage calculation will enable you to determine the amount of future interest that would be paid on a mortgage that is a combination of interest-only and standard amortization but on a loan that is all due and payable in a shorter term. For example, this would apply when a borrower negotiates a five-year loan that is paid with interest-only monthly payments for the first year, and then monthly payments fully amortized over thirty years for the remaining four years.
These updates are totally free to our real estate calculator customers. In fact, because the program is 100% web-based, customers will immediately have access to these (and other calculators we add over time) the next time they log in.
If you are not yet familiar with this online real estate calculator that also teaches the definitions and formulas for dozens of time value, tax shelter, cash flow, and real estate investment returns, we encourage you to visit the proapod website and discover it under real estate calculator. We do offer a 50% discount to teachers, students, and real estate professionals. If you qualify, you pay just $24.95.