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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Figuring loan payoffs, etc. Posted by Ward-CA- on February 25, 2002 at 7:23 AM In Reply to: formula for figuring out payoff on a loan posted by Bryan on February 24, 2002 at 7:47 PM : Hi Ward : What is the formula for figuring out the payoff on a loan? : The things I would know are the date the loan was taken, a good guess at the interest rate, and if it were a first that it probibly is a 30 year loan. I know from there i could add the arrearage stated on the NOD. : If you could add a seperate formula lets call it the everything formula that would include pay off,interest on back payments,and trustee fees that would really help me out. : I get my info from CRR and then from copys of the NOD and NOS from my title co. If that helps : thanks again Bryan =•=•=•=•=•=•=•=•=•=•= Bryan, for simplicity we figure the mortgage/trust deed payoff separately from other items, such as reinstatement amounts, or trustees fees. So let’s start by determining the payoff balance of a senior first mortgage/trust deed. Actually, with a financial calculator it’s relatively easy to determine the payoff balance of an unpaid loan. Initially you need to know the first three of the four standard components to a mortgage and then solve for the payment component: N = the number of months the mortgage/trust deed was set up for. You can assume in the U.S. it’s a 30 year loan. I = the interest rate being charged you can find by going to our link, “60+ Years Interest Rates” on this web site. It covers the time span from 1933 to 1998 and soon to be updated to 2002. PV = the principal value of the mortgage/trust deed at the time it was recorded. PMT = Now hit your PMT button and your amortizing calculator, like the HP-12C, will be able to solve for the monthly payment. All you have to do to find the current payoff amount is to figure out, in months, the amount of time that has elapsed from the original recording date of the mortgage/trust deed to the present and put that number into N. Then hit the FV future value key and the current payoff balance will appear. TRUSTEE’S FEES in CA are basically 3% of the original balance of the loan being foreclosed upon. So only a little calculation here. The reinstatement of or curing of the loan in foreclosure amounts to multiplying the loan payment you came up with times the number of months the loan has been delinquent and adding a late charge fee. Here in CA the maximum late charge fee is 6% and the date the delinquency began is listed in the recorded Notice of Default. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward : : What is the formula for figuring out the payoff on a loan? : : The things I would know are the date the loan was taken, a good guess at the interest rate, and if it were a first that it probibly is a 30 year loan. I know from there i could add the arrearage stated on the NOD. : : If you could add a seperate formula lets call it the everything formula that would include pay off,interest on back payments,and trustee fees that would really help me out. : : I get my info from CRR and then from copys of the NOD and NOS from my title co. If that helps : : thanks again Bryan : =•=•=•=•=•=•=•=•=•=•= : Bryan, for simplicity we figure the mortgage/trust deed payoff separately from other items, such as reinstatement amounts, or trustees fees. So let’s start by determining the payoff balance of a senior first mortgage/trust deed. : Actually, with a financial calculator it’s relatively easy to determine the payoff balance of an unpaid loan. Initially you need to know the first three of the four standard components to a mortgage and then solve for the payment component: : N = the number of months the mortgage/trust deed was set up for. You can assume in the U.S. it’s a 30 year loan. : I = the interest rate being charged you can find by going to our link, “60+ Years Interest Rates” on this web site. It covers the time span from 1933 to 1998 and soon to be updated to 2002. : PV = the principal value of the mortgage/trust deed at the time it was recorded. : PMT = Now hit your PMT button and your amortizing calculator, like the HP-12C, will be able to solve for the monthly payment. : All you have to do to find the current payoff amount is to figure out, in months, the amount of time that has elapsed from the original recording date of the mortgage/trust deed to the present and put that number into N. Then hit the FV future value key and the current payoff balance will appear. : TRUSTEE’S FEES in CA are basically 3% of the original balance of the loan being foreclosed upon. So only a little calculation here. : The reinstatement of or curing of the loan in foreclosure amounts to multiplying the loan payment you came up with times the number of months the loan has been delinquent and adding a late charge fee. Here in CA the maximum late charge fee is 6% and the date the delinquency began is listed in the recorded Notice of Default. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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