Using the Basic Mortgage Guide

Using the Basic Mortgage Guide

Click the Basic mortgage button from the guide screen. The Basic mortgage dialog window is displayed as shown below with its standard defaults. This guide's assumptions are listed in the box above the input fields.

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Basic mortgage dialog input fields

Note: Use [Tab] to move from field to field or click within each field.

  • Start date The start date defaults to the current date. Click in the Start date field and enter a date or click the Calendar button and select the desired date. (See Date shortcuts.)
  • Loan amount Type the dollar amount of the mortgage. For this example 325K (for 325,000.00) was entered. (See Amount shortcuts.)
  • Loan term (in years) The drop-down list has 2 options: 15 or 30 years. You can choose an option from the drop-down list or type 15 or 30 in the Loan term field. For this example [Tab] (for default of 30 years) was entered.
  • Interest rate This is a percent field where the interest rate of the mortgage should be entered. For this example 4.25 was entered (for 4.25%).
  • Create Builds the cash flow based on all entered data.

The pre-populated Cash Flow Data window should now appear as shown below. The cash flow can be further adjusted to fit your specific basic/fixed rate mortgage scenario.

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Cash Flow Data fields

  • Label field defaults to New Fixed Rate Mortgage. (See Edit the Label field.)
  • Compounding Period is set to Monthly per this guide's assumptions.
  • Nominal Annual Rate is set to the Interest rate of 4.25%.
  • The calculation settings per this guide's assumptions (Normal amortization and a 365 day year) are displayed at the bottom left. You can click on the displayed settings to quickly access the Calculations group on the Configuration ribbon where you can change these settings.

Cash Flow Matrix fields

  • Start date The Date in the Loan Event (line 1).
  • Loan amount The Amount of loan - 325,000 - in the Loan Event's Points & Fees details box (line 1). (See Entering Points & Fees.)
  • Loan term (in years) The Number in the Payment Event (line 2) = 360 (30 years).
  • This guide's assumption of Payments always on the first of the month (prepaid interest days) Notice the 20 Prepaid interest days (number of days from the Start date to the beginning of the first payment period) in the Points & Fees details box (line 1) and that the Date on the Payment Event (line 2) is on the 1st of the month.