My mortgage monthly payment is miscalculated

My mortgage monthly payment is miscalculated. Mortgage Calculator

My mortgage monthly payment is miscalculated video duration 5 Minute(s) 59 Second(s), published by Antonio Arauzo Azofra on 12 01 2014 - 09:13:19.

Petition and more information: http://interes.ax5.org/ Compound interest is the only interest rate used in serious finances
It allows to compare products and to

This short video presents a derivation of the typical Mortgage, Sinking Fund, and Annuity formula
The video presents a rationale from a bank account . How to use the monthly payment formula for mortgages/loans with fixed interest rates.

Petition and more information: http://interes.ax5.org/

Compound interest is the only interest rate used in serious finances. It allows to compare products and to create competition. However, public mortgage quotas are calculated using an approximated formula (a mix between compound and simple interest). Apart from creating confusion, this makes mortgage interest rates to grow even greater when interest rates rise (as the approximation error gets larger).

In the old times, using the exact formula could be complex but, nowadays, even the phone on our pocket can calculate it. There is no excuse to continue using the approximated formula.

We demand banks are forced to use the formula applying the effective annual interest rate (the universal interest rate unit).

Petition and more information: http://interes.ax5.org/