Line Of Credit Amortization

per year or 0.5% per month, of the outstanding loan balance, in addition to the monthly interest. What would be the breakdown of the beginning loan balance, monthly payment, interest component, principal component and the ending loan balance for the next four months. I'm assuming that the amortization period is one year.

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2008-11-11 20:04:44 by Veronica

Phil Strong answers the query "Paying off the mortgage vs Line Of Credit?" Get more details at: philstrong.com

I have equity in the house. I now have a 15 year amortization and I was thinking of going 20 to keep my payments down. What do you think?
my mortgage is 4.5%, my line of credit is variable at 6% and a new mortgage for an additional 30,000 would be 4.68% on the total of 115000.

So, I assume your line of creidt is Secured by your house.

I see you wanted to lower your payment by stretching back to 20 years. Is that some kind of situtation happened? There are lots of things you can do.

What I will suggest to do is the followings:
1) Keep a secure line of credit at ( combined income / 2 ) @ 6%
2) Rest in a fixed rate mortgage.

The reason of doing that is. I have developed a system that you can save thousands of interest by setting up like above. Please call me for details.

But in general, having such a setup with allow managable line of credit. Maximized the low rate mortgage rate of a fixed term.

2006-09-26 19:04:03 by penquin

I know that is a software that can help me to pay more fast my credits but I don't understand how, everything get more complicate because a bank is offer me a $10,000 credit line, the point is using both to pay more fast and less interes. I don't understand how?

You don't understand because it just makes no sense to try to borrow your way out of debt. Ignore the other loans and just focus on paying as much as you can on the debt you now have. I strongly urge you to get a copy of Dave Ramsey's book, Total Money Makeover and learn to live within your means, stop overspending, stay out of debt, and never, ever borrow money to pay other debts. That will just get you in more trouble financially.

2008-02-18 11:30:22 by CINDY G

My husband and I are wanting to buy a house. We are trying to pay off a large line of credit bill before we buy the house so that we are sure that we are in a position to afford it. According to my amortization schedule, we will have it paid off by March 2009. But in doing that we are not contributing anything substantial to savings for a down payment.

So, my question is, should we divert some of the debt payment to savings or would we do better with our money by paying off our debt first, then save.

Interest is currently 8.75% per annum on the line of credit and we are paying $600.00 bi-weekly.

I also contribute $100/month to a mutual fund thing. Should I put that off until the debt is paid to put that money towards debt instead of savings?

We’re also in Canada in case that makes a difference.
The mutual fund is not a “tax deferred credit” but has about $1,400.00 in it now and is sort of an “emergency fund” and I have about $10,000.00 in RRSP’s that we are sorta thinking about using as a down payment at this time.

A mortgage rate would be better than 8.75 % but the interest is not tax deductable.

I understand where you are because my husband and I were exactly in the same place. I can tell you what we did. My husband had some debt which he brought into the marriage. He was paying it off in very small installments every month but there was no end to this. I decided to save up and pay off each credit card that he had maxed out before we moved into our home. It was the best decision we made. Once the debt was payed off, even though we didn't contribute very much to our savings, it was easier for us to make other payments that came up after we bought the house knowing that his debts were delt with. I also live in Canada and am aware of all the high interest rates. So my advice to you is to pay everything off because the interest that is accumulated towards this amount ends up as savings in your pocket when it's all payed off. It's a lot easier to save money when you don't have the debts anymore.

2007-02-16 09:47:15 by babypocket2005

McGraw Co. sold $6,312,000, 6%, 5-year bonds on January 1, 2007. The bonds were dated January 1, 2007, and pay interest on January 1. The company uses straight-line amortization for premiums and discounts. Financial statements are prepared annually.



Prepare the journal entry to record the issuance of the bonds assuming they sold at: 95.

Jan 1
debit credit
??? ???
??? ????
??? ????

prepare an amortization table for the first three interest payments and fill in the following amounts.

Year 1 Interest to be paid $????????
Year 2 Interest expense to be recorded $???????
Year 3 Unamortized premium/discount $?????????

Prepare the journal entry to record the issuance of the bonds
assuming they sold at: 101.

Jan 1
debit credit
??? ???
??? ????
??? ????

prepare an amortization table for the first three interest payments

McGraw Co. sold $6,312,000, 6%, 5-year bonds on January 1, 2007. The bonds were dated January 1, 2007, and pay interest on January 1. The company uses straight-line amortization for premiums and discounts.
Prepare the journal entry to record the issuance of the bonds assuming they sold at: 95.
Dr Cash $5,996,400
Dr Bonds discount $315,600
Cr Bonds payable $6,312,000

prepare an amortization table for the first three interest payments
Bonds discount-
1/1/2007 $315,600
'07 amortization ($63,120)
12/31/2007 bal. $252,480
'08 amortization ($63,120)
12/31/2008 bal. $189,360
'09 amortization ($63,120)
12/31/09 bal. $126,240

Year 1 Interest to be paid $378,720 (payment is the same for each of the 5 yrs)
Year 2 Interest expense to be recorded $441,840
Year 3 Unamortized discount $126,240 (see above)

Prepare the journal entry to record the issuance of the bonds
assuming they sold at: 101.
Dr Cash $6,375,120
Cr Bonds premium $63,120
Cr Bonds payable $6,312,000

prepare an amortization table for the first three interest payments
Bonds premium-
1/1/2007 $63,120
'07 amortization ($12,624)
12/31/2007 bal. $50,496
'08 amortization ($$12,624)
12/31/2008 bal. $37,872
'09 amortization ($$12,624)
12/31/09 bal. $25,248

Year 1 Interest to be paid $378,720 (payment is the same for each of the 5 yrs)
Year 2 Interest expense to be recorded $366,096
Year 3 Unamortized premium $25,248 (see above)

2008-04-30 22:22:48 by Jab.