CheckMy 2000
Financial Management Software
On - Line User Guide
CheckMy Mortgage 2000
High Performance PC Software
August
2002
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Purchase CheckMy Mortgage | Purchase All CheckMy Software |
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Index Of Contents |
Click the line to move to the subject item.
Introduction to CheckMy Software
Interface conventions in CheckMy 2000 Software
Recommended system requirements
Introduction to CheckMy Mortgage 2000
Installing the CheckMy Mortgage 2000 CD-ROM
Starting CheckMy Mortgage 2000
Saving and recalling mortgage data
Password protecting your mortgage information
Repayment schedules (amortization calculations)
Refinance mortgage calculations
Interest rates and conversions between rates
Canadian semi-annual repayment mortgages
Introduction to CheckMy 2000 Software
CheckMy Banking Calculations 2000 - with Quicken® importCheckMy Loans Calculations 2000 - with 15 loan calculators
CheckMy Mortgage Calculations 2000 - with country settings
When you purchase CheckMy 2000 programs you acquire a non-exclusive, non-transferable end user license to run this software on any computer.
CheckMy Mortgage Calculations 2000 runs under Windows 95, 98, ME & XP platforms.
Consistent Tables
Amortization values calculated in CheckMy Mortgage 2000 software are identical with the tables published in "Barron's Financial Tables For Better Money Management" © 1992, the "Lenders Toolkit" published by BankLine Publications© 1995, "The Bankers Secret" published by Villards Books, a Division of Random House ©1994, by Marc Eisenson, The Smart Company's Guide to Managing Your Banking (Techniques to gain Maximum Value at Minimum Cost) published by the Financial Times/Pitman Publishing, © The Bank Consultancy Group 1994, and The Vest Pocket Real Estate Advisor, published by Prentice Hall, © 1989.
Check these features in CheckMy Mortgage 2000 |
Repayment schedules for different types of fixed rate mortgages.
Calculating your mortgage repayment amounts, total payments and total interest.
Comparing six different fixed rate mortgages interest costs.
Projects your future property equity under differing loan terms and future price inflation
. Calculating your fixed rate refinance balance.
Comparison of three alternative refinance options.
Loan and APR monthly mortgage repayment calculators.
Decimal places settings for interest calculations.
Monthly updating your mortgage loan for fixed and variable rate mortgages.
Projects property equity and new borrowing potential as future value increases and mortgage balance is repaid.
Calculates overpayment of interest if/when repayment amounts are incorrect.
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All CheckMy 2000 products crunch through financial equations calculating interest and coping with multiple repeat calculations at high speeds. High power personal computers handle these calculations with ease.
Before you install CheckMy 2000 products, check this list to make sure that your computer has everything you need.
The recommended processor for CheckMy Mortgage 450 MHz
You must have at least 32 MB (megabytes) of RAM. For best performance, we recommend 128 MB
You must have a 4x speed (or faster) CD-ROM drive.
You must have sufficient empty storage space on your hard drive. How much depends on your usage of the CheckMy 2000 Software. CheckMy Mortgage 2000 requires 7.50 MB of free disk capacity.
Your computer must support SVGA (16 bit) quality graphics, and your video card must have at least 1 MB of onboard memory. For best performance we recommend systems with 32 MB.
There must be a working mouse attached to the computer.
There must be a floppy drive if you want to back up your data. Windows® 95/98 must be installed.
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CheckMy 2000 software is used with a combination of both mouse and keyboard. We have installed several short-cut keys on the keyboard to significantly speed up using the CheckMy 2000 software.
Using a Mouse
We assume that you know how to use a mouse. Since some people will be new to their computer we provide a brief definition how the most common terms are used in this User Guide:
"Clicking" refers to placing the mouse pointer over an area of the screen and clicking with the left mouse button.
"Right-clicking" refers to clicking with the right mouse button.
"Dragging means holding the left button down while moving the mouse."Selecting" means clicking on something with the mouse.
"Click > a button means clicking the on -screen button with the mouse.
You can "scroll" some of the boxes and screens in CheckMy 2000 software by dragging the button along a slider bar on the right side of the screen.
The Toolbar
The toolbar is one of the most important "Click and go" parts of CheckMy 2000 software. The toolbar is the horizontal frame containing the graphics pictures at the top of the screen. To open the loan register, reports screens, open the Recalc, APR and loan calculators, then click the required picture on the toolbar. This opens the selected screen for you.
The Menu bar
The menu bar is the horizontal bar running directly above the toolbar containing pop down menus starting with File. Clicking a menu brings the menu into view. Click the option you wish to use and it will open.
The Tab Key
Use the tab key on the keyboard to enter data into new account set up and loan data entry boxes in CheckMy Loans. This is usually found to the left-hand side of the "Q" key.
F Keys
CheckMy 2000 software screens that require your input have on-screen Help messages to assist you and help find your way around. These are located by clicking the F1 button on the keyboard. The F2 key retrieves the Quick Start message when the Loans information screen is open.
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CheckMy Mortgage 2000 provides easy maintenance and verification of fixed rate mortgage calculations in respect of:
Starter mortgage repayments
Regular mortgage repayments
Total Interest costs
Refinance balances
Interest per payment period
Total mortgage interest
Loan repayments per payment period
Plus MyMortgage:
MyMortgage provides easy record keeping of fixed interest or variable interest rate monthly or semi annual mortgage repayments. The additional features are:
Changing mortgage interest rates any month
Calculates monthly interest
Calculates monthly mortgage repayment
Calculates monthly mortgage balance
Calculates total interest paid to date.
Adds new loans to the mortgage
Adds new costs to the mortgage
In US country setting mode CheckMy Mortgage 2000 calculates interest and loan repayments based on reducing weekly, bi-weekly, 4-weekly, payment basis.
In Canadian and Universal/semi-annual country settings mode CheckMy Mortgage 2000 calculates interest and mortgage repayments based on reducing six-monthly (semi-annual) balances.
Read the section Interest Settings and Conversions for further information.
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If your Mortgage 2000 software has arrived via download, you will find Mortgage 2000 located in your download folder in Windows Explorer. Click Setup to start Installshield routines. Install Mortgage 2000 in the CheckMy folder.
If your Mortgage 2000 software arrived on a CD-ROM, open the CD-ROM drive and place the CheckMy 2000 CD-ROM in your CD drive. Close the drive.
Either: Click the "My Computer" icon on your Windows computer screen and then click the CD drive icon (usually the "D" drive). You will see the install icons for CheckMy Banking 2000, CheckMy Loans 2000 and CheckMy Mortgage 2000.
To install CheckMy Mortgage click the Loans icon.
Installshield® will lead you quickly and easily through set up procedures.
CheckMy 2000 installs into C: \Program Files\CheckMy.
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The CheckMy folder in your Windows Program List will contain Mortgage 2000 after installation. If you have the CD version, once you have successfully installed CheckMy Mortgage 2000 keep the CD in the CD drive and click the Windows Start button > Programs > locate the CheckMy program in the Program list and click Loans. This opens the CheckMy Mortgage program.
After you have finished a session and closed the system down, when you come to restart CheckMy Loans 2000 again the CheckMy Loans CD must be placed in the CD drive before you start. It can be removed after the system has opened. This is a security measure to prevent illegal distribution. The CD also contains a security program to defend itself against illegal copying.
The CheckMy folder in your Windows Program List will contain Mortgage 2000 after installation. If you have the CD version, once you have successfully installed CheckMy Mortgage 2000 keep the CD in the CD drive and click the Windows Start button > Programs > locate the CheckMy program in the Program list and click Loans. This opens the CheckMy Mortgage program.
After you have finished a session and closed the system down, when you come to restart CheckMy Mortgage 2000 again the CheckMy CD must be placed in the CD drive before you start. It can be removed after the system has opened. This is a security measure to prevent illegal distribution. The CD also contains a security program to defend itself against illegal copying.
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After CheckMy
Mortgage 2000 is installed the main menu appears on your screen.
Select Country Settings. This opens the Country Settings window containing the
American, Canadian and British flags and a Universal flag.
At delivery CheckMy 2000 Mortgage is set to US country mode.
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A Quick start message is available by clicking F2 key in CheckMy Mortgage 2000/Gold Edition when you are in the main menu screen. The F2 key, which is located at the top, left of the keyboard will retrieve this help message when you are in the menu screen Click the small window at the bottom left is you do not want this message to keep appearing every time you open CheckMy Mortgage 2000.
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The front menu enables you to move quickly around CheckMy Mortgage to any of its major programs.
Click Country Settings to select USA or Candian mortgages.
USA setting sets CheckMy Mortgage 2000 to calculation of interest on declining balances based on the payment frequency and sets the currency display to $.
Canadian settings sets CheckMy Mortgage 2000 to semi-annual calculation of interest based on balances declining on a semi-annual basis and sets currency display to $.
Universal settings offers monthly interest or semi-annual interest calculations on a declining balances.
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If you want to save your calculation records click Save on the toolbar. This opens the Save As window. Enter the filename you wish this data to be saved under and click the Save button. This will save your calculations for future reference.
Recalling Saved Calculations
If you have saved data in Schedules, go to the Schedules screen and click File > Open. Select the file you wish to retrieve and click Open. The data you provided is entered into the system. Click Enter and the calculations will appear in the grid.
Note: Files saved in Schedules cannot be recalled when you are working in the Refinance or Compare parts of CheckMy Mortgage and vice versa.
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To protect unauthorized persons using your CheckMy Mortgage 2000 click File on the menu bar > Password. Enter any memorable password into the password box and repeat and then click OK.
If you wish to change the password at any time click File>Password.
The password box appears every time you open CheckMy Mortgage 2000 once you have set a password.
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If you want to back up account data on a floppy disk follow these procedures:
Insert a formatted disk in your floppy disk drive. Go to the front menu and Click File > Backup > Back Up. The file is copied to disk.
Alternatively go to File>Backup > Back Up.
If you want to restore account data from a floppy disk follow these procedures:
Insert the disk containing CMM data in your floppy disk drive. Go to the front menu and Click File > Restore > Restore. The file is copied into CheckMy Mortgage.
Alternatively
go to File>Restore > Restore.
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If you want to change the way dates are presented in your CheckMy Mortgage 2000, close any programs you are running, click the Windows Start Button on your computer screen > Settings > Control Panel > Regional Settings > Date > Short Date Style (change) > OK > Restart your computer.
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Click the Country Settings button on the front menu, the currency options in the Universal settings are:
$ Dollar
£ Pound
Y Yen
FR French
Franc
DM Deutschmark
SP Spanish peso
IT Italian Lire
GK Greek Drachma
EU Euro
None
Select one option and click OK. If you want CheckMy Mortgage to display data without currency signs, set country settings to Universal and then choose "None" in the currency settings.
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We have provided a toolbar located near the top of the screen to help you move quickly and easily around CheckMy Mortgage 2000.
Saves mortgage data located in the current screen. Clears all data and mortgage calculations in the current screen. Opens the Schedules (amortization) tables. Opens the Compare Mortgage part of CheckMy 2000. Opens the Refinance part of CheckMy Mortgage 2000. Opens the mortgage loan calculator Opens the APR mortgage loan calculator. Annual amortization schedule for mortgage data in the current screen. Print the current screen Directions to Help features contained within CheckMy Loans 2000.
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Click Schedules on the toolbar or alternatively click Repayment Schedules on the front menu bar.
There are four buttons at the bottom of the screen:
Close: Returns user to the main menu and clears all data in the schedules screen.
< Move: Returns user to the main menu and maintains all data in the Schedules data.
Enter: Click Enter to start calculations in the schedules screen.
Move> Opens the full Repayment Schedule screen.
Toolbar buttons that work with Schedules:
Save Data: Saves users input data entered into Mortgage Information in Schedules. When saved input data is recalled click Enter to recalculate.
Clear Table: Clears the data in Schedules. Allows a quick re-start for new data and calculations.
AnnualCalc: Displays annual amortization totals for current data. Requires click/Enter to calculate schedules first of all.
Print: Prints the full repayment schedule data.
Schedules screen provides mortgage repayment and interest schedules for any loan up to 50 years in length.
There are up to nine boxes for you to enter starting conditions of the mortgage:
1. Mortgage type:
Loan + interest payments > Amortization of the loan with one constant interest rate.
Low interest starter mortgage > Amortization of the loan with a starter interest rate and regular interest rate which is then constant throughout the loan period.
Interest mortgage > Calculation of interest only mortgage schedules.
Starter interest mortgage > Payment of interest only for a starter period, then amortization of the loan with one constant interest rate for the remainder of the mortgage term.
2. Mortgage loan:
Enter the amount of the mortgage.
3. Starter interest rate:
If the mortgage is either Low interest starter, Starter interest mortgage this entry box appears. In the other two Mortgages type options it remains hidden.
Enter the starter interest rate in annual percentage format.
Users of semi annual mortgage calculations (such as Canadian mortgages) see: Semi annual calculation rules located by clicking the F6 key on the keyboard.
4. Starter interest payments for:
If the mortgage is either Low interest starter, Starter interest mortgage this entry box appears. In the other two Mortgage type options it remains hidden.
Select the number of years or months the starter interest rate applies. The software prevents a starter term exceeding 50 years.
5. Regular interest rate:
Enter the interest rate which will apply for the term of the mortgage. If a starter interest rate has been entered the regular interest rate is the rate which follows the starter rate when the starter term has expired.
Enter the regular interest rate in annual percentage format.
6. Loan term:
Loan term throughout CheckMy Mortgage and CheckMy Mortgage 2000 means the full amortization period over which the loan will be fully repaid.
Enter the loan term period in years or months.
When you enter the Loan term the software automatically enters the same time period into the Mortgage term box. If this value is correct tab through to the Payments box.
The software does not allow the mortgage term to exceed 50 years or 600 months.
7. Mortgage term:
Mortgage term throughout CheckMy Mortgage and CheckMy Mortgage 2000 means the period of time until the loan balance has to be repaid or refinanced.
It can also be used as the period of time you expect to have this mortgage before you sell the property.
In each case the software calculates the balance at the end of the unpaid mortgage term based on the Mortgage term you have entered. This calculated loan balance at the end of the loan term is displayed in the Repayment due box to the right hand side of the screen.
Enter the mortgage term in years or months.
The software does not allow the mortgage term to exceed 50 years or 600 months.
8. Payments:
Select the period that your payments are made. If you select weekly, 2-weekly or 4-weekly make sure that your lender actually credits your payments to your mortgage account at the selected frequency.
Users of semi annual mortgage calculations take note of: Semi annual calculation rules located by clicking the F6 key on the keyboard.
9. Start date:
The software defaults to the current system date. Click the calendar once to enter the date.
10. To set mortgage calculation program running:
Once all the required input boxes have been completed click the Enter button located at the base of the screen.
Note: If your screen does not display the bottom row of buttons and/or a scroll bar appears on the right hand side of the screen, return to your Windows screen and close any additional menu bars that are running permanently on your system, such as Lotus Notes. Returning to CheckMy Mortgage you should now be able to see the bottom row of buttons.
Amortization Schedule
The amortization grid shown below the input and totals boxes can be viewed as a full screen when you click Move >.
Annual Tables
The annual repayment schedules for the mortgage data calculated within Schedules are displayed when you click Annualcalc on the toolbar.
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The Compare Mortgages suite in CheckMy Mortgage 2000 compares a maximum of six mortgages.
For each mortgage, the user sets the following mortgage terms:
Use the tab key on the keyboard to enter data.
Mortgage amount > automatically calculates the deposit amount required in the next screen.
Starter interest rate > sets first interest rate.
Starter interest period > sets starter interest period in months.
Regular interest rate > sets interest rate after starter rate.
(Note if there is no early starter rate, set starter interest rate = 0.00 and interest period = 0 months).
Loan term in years > the length of time the mortgage is amortized (full repayment term).
Mortgage term in years > The length of time you expect to have to repay the loan balance.
Start date: The mortgage repayment starting date.
Mortgage costs: The total amounts of legal, set up and loan fees associated with each mortgage.
Compare Mortgages computes for each separate mortgage:
The starter repayment amount:
The regular repayment amount:
If the repayment amounts calculated are not the same your lender has provided, there may be reasons you need to investigate further. You are recommended to read the CheckMy Mortgage 2000 - Advanced User Guide.
The software does not allow you to calculate further analysis with incorrect payments data.
Click Next> on the Alternative Mortgage screen to view:
Recap of six separate mortgages:
Starter monthly payment
Regular monthly payment
Starter interest rate
Regular interest rate
Mortgage term in months
Calculation of:
Refinance balance > loan balance outstanding at the end of the mortgage term.
Full term interest > the total interest cost of the loan to full repayment. Allows full loan costs to be compared on an equivalent basis.
Repayment amounts by years: Allows user to review how much of the loan is repaid each year.
Projections Into the future - Real Estate Analysis |
Open the Compare Mortgages part of CheckMy Mortgage.
Use the tab key on the keyboard to enter data into the first screen of the Compare Mortgages program, called Real Estate Information.
Property Address.
Purchase price.
Forecast Price Change.
The average percent rate at which you expect your property value to rise (or fall) over the lifetime of the real estate projections.
The rate of property price change can be altered in the Real Estate Analysis screen to carry out alternative financial projections using different price predictions.
If you expect your property price to decline enter the price change as a negative figure with a minus sign.
Annual property taxes. Annual property taxes you make now to local Government.
Annual maintenance. The amount you expect to spend on repairs and maintenance in year one of ownership. (Note that annual maintenance costs are inflated over the lifetime of your projected ownership by the cost index. Even if you do not expect to incur any maintenance costs in year one of your ownership, you may wish to enter a positive figure, which represents average years maintenance costs).
Annual tax credits. If you receive tax credits for you property, enter this year's amount this box. If no tax \credits tab through top leave the value at zero.
Annual insurance costs.Enter you annual property insurance costs
Now, click the Move> button and enter your mortgage data into the Alternative Mortgages screen.
Click Investment Returns button located at the bottom of the screen.
Note: To review Real Estate Analysis/Any mortgage, click the tick box above the required mortgage in the Alternative Mortgage screen then click Move> Move>.
Real Estate Analysis screen displays the following:
Enter the annual rate at which you want to project costs to increase. Costs are summed to be equal to (annual maintenance, insurance and property taxes - annual tax credits).
Price/value. The purchase price of the property, which you entered into the REAL ESTATE INFORMATION screen is projected into the future, escalated by the annual Price Change value at the top of the grid. Price/values are compounding on an annual basis.
Loan balance. The declining loan balance of this particular mortgage loan is projected over the full amortization period.
Equity. The difference each year between the Price/value and the reducing loan balance. In the first row (year), equity = your deposit amount.
Cum. Interest. The cumulative amount of loan interest paid on the mortgage loan.
Cum costs. Each year cumulative costs equal: (annual property taxes + annual maintenance + annual insurance - annual tax credits)*(1+annual cost change/100) n! + mortgage costs. (n! denotes the value inside the bracket raised to the power of "n"). Cumulative costs are compounded on an annual basis.
Equity - costs. The difference each year between Equity less cumulative costs.
Net gain. Each year is computed as your original deposit amount+ new equity value in your property - cumulative costs to date.
Return %. Each year is computed as your net gain/number of years since year zero (average annual net gain) divided by your original deposit amount expressed as a percentage.
Net gain expresses how much of your real money has been lost or will be acquired in the future based on the property values and mortgage terms given various annual price change and cost change factors you predict will occur.
Return % expresses the projected annual average rate of gain or loss of your original deposit.
Note: If your original deposit amount is zero, Return % cannot compute an expression of rate of return based on zero. In this circumstance you will see a message "No basis" in this column.
You can change price and cost indexes to see how these effect your net gain/loss projections. Enter any new value and click Reset> to recalculate.
To save your Mortgage data, click Save Data on the toolbar.
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Click Refinance on the toolbar or go to the main menu and click the Refinance button. Enter the following data into the Real Estate Information screen:
First screen
Enter your property details
Property Address.
Purchase price.
Purchase date.
Current date
Current value
… enter what you consider the current property value. The annual price increase compounded since you purchased the property is displayed in the lower right hand box.
Original loan. Enter your original mortgage loan amount.
Annual interest rate. Enter the interest rate of your mortgage.
Note: The software will calculate your refinance balance assuming that the interest rate has remained unchanged since you commenced the mortgage.
Click the Move > button.
Second screen
Tab through the CURRENT MORTGAGE DATA boxes; enter the expected refinance date.
If the refinance balance or repayment amounts calculated are not correct, insert the true actual amounts.
Do not include insurance or tax payments in the Current monthly payment box.
After you have tabbed the Current monthly payment value, look across to the NEW MORTGAGE TERMS tables. You will see a tick above the first left-hand column.
Enter new re-mortgage data into this first column and repeat for each alternative mortgage.
Mortgage Co/Bank. The name of a possible new lender.
Refinance balance. Amount is copied from the value shown in row 7 in the left-hand column.
New interest rate. Enter the new mortgage interest rate.
New mortgage term. Enter the term (in years) that the new mortgage will be amortized over (full repayment term).
Points: If you expect to pay points to negotiate your new mortgage interest rate enter the percentage amounts in this box. If you are not paying points tab through this box, it will default to zero.
Penalty costs: Some U.S States outlaw penalty payments when a mortgage is re-financed a mortgage.
If this is your situation simply tab through this box, a value of zero appears.
If you will have to pay a penalty to redeem your current mortgage, click the Penalties button.
Enter either the percent of your loan balance you will have to pay your current lender or the actual amount. Select whether the penalty cost will be added to your loan balance or not.
If you choose not to tick "This amount is added to the new mortgage balance" box, the system assumes that you will provide these funds.
If you enter a tick "This amount is added to the new mortgage balance", then the software calculates the new loan balance and repayment amounts assuming that these costs will be repaid over the lifetime of the mortgage repayment period.
Expenses. Enter re-mortgage expenses, such lender fees (but excluding points) and legal fees that will be added to the new loan balance.
Costs. Enter re-mortgage costs that will not be added to the new loan balance. The software assumes that you will provide these funds.
New Cash. If you are raising new cash with the new loan, enter the amount.
When all the data has been entered, if you want to review the analysis of this re-mortgage option click Move>
If you want to enter re-finance data for a second or third mortgage option, click the tick above the spare column and enter new data.
When all re-mortgage data has been entered, click Move>.
Third screen
The system calculates the following for each new mortgage:
Penalty costs added to the new mortgage.
Expense costs added to the new mortgage
Cash raised added to the new mortgage
Points payments.
The sum of these amounts is the new loan refinance balance required.
Calculated new monthly repayments
Old monthly repayments (current mortgage)
Monthly difference
Penalty costs not added to new mortgage
Costs not added to new mortgage
Total costs not added to mortgage (expenses you have to meet from your own resources)
Total amounts added to refinance balance (including new cash raised)
Total refinance costs (those added to the new loan amount + those not added)
Click the Move > button:
Fourth screen
Recap of these calculations:
Current mortgage annual interest rate
New mortgages annual interest rate
Total number of months remaining to retire your old (current) mortgage.
The total number of months to retire (completely repay) each alternative new mortgage.
Total repayments required from now to retire your old (current) mortgage.
If you keep your existing mortgage, this is the amount you have to pay to fully repay the loan balance outstanding now.
Total repayments to retire each alternative new mortgage.
If you take one of these alternative mortgages, this is the amount you will have to pay to fully repay the loan amount.
Calculated total repayments difference.
Difference between the amount owing on your current mortgage balance and the re payments required to fully repay the new mortgage.
Calculated interest payments to retire your old (current) mortgage.
Calculated interest payments to retire each of the new mortgages.
Interest payments difference. This provides the total cost difference between the amount of interest you still have to pay on your existing mortgage and the total amount of interest you will have to pay for your new mortgage.
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Mortcalc is a quick mortgage calculator for loans using the standard nominal type of interest rate. See the section Interest rates and conversions between rates for further information about interest rate types.
Mortcalc calculates repayment amounts for a given loan term and an annual interest rate.
Checks your true mortgage repayment amount against lenders quoted repayment amount.
Spots mistakes.
Click Mortgcalc on the toolbar.
Use the tab key to enter data into the calculator.
Loan amount. Enter the amount you want to borrow.
Loan term. Enter the amortization period of the loan in years or months.
Annual interest. Enter the nominal annual rate of interest charged.When you tab through the Annual interest value the system calculates and displays:
The monthly interest rate as a percent.
The monthly repayment amount
The total interest cost of the loan.
Click Done or Cancel to close the calculator.
When CheckMy Mortgage is set to Canadian or Universal/Semi-annual interest settings, use the effective interest rate not the true nominal interest rate.
Read the section on Interest Settings and Conversions below for further information.
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APRcalc is an easy to use mortgage calculator for loans using the Annual Percent Rate (APR) as the interest rate. See the section Interest rates and conversions between rates for further information about interest rate types.
APRcalc calculates repayment amounts for a given loan term and an APR annual interest rate.
Checks your true mortgage repayment amount against lenders quoted repayment amount.
Spots mistakes.
Click APRcalc on the toolbar.
Use the tab key to enter data into the calculator.
APR rate. Enter the APR loan amount.
Calculates the nominal monthly interest rate.
Calculates the nominal annual interest rate.Loan amount. Enter the amount you want to borrow.
Loan term. Enter the amortization period of the loan in years or months.
Annual interest. Enter the nominal annual rate of interest charged.
When you tab through the Annual interest value the system calculates and displays:
The monthly interest rate as a percent.
The monthly repayment amount
The total interest cost of the loan.
Click Done or Cancel to close the calculator.
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In US mode the software automatically set the mortgage calculation programs in CheckMy Mortgage to use nominal annual interest rates.
Nominal interest rates work as follows:
If the annual mortgage interest rate is 8.500%, and repayments are made monthly, the monthly nominal interest rate is 8.5000/12 = 0.708333% p/m.
Loans are reduced each time a repayment is made.
If you are unsure ask your lender.
If your mortgage loan is quoted in APR interest terms, use the APR calculator on the toolbar in CheckMy Mortgage to convert the APR interest rates to a nominal interest rate figure.
Convert APR interest type to nominal interest type using the APRcalc calculator located on the Toolbar if your mortgage interest rate is quoted in APR terms and enter the nominal interest rate into all boxes requiring interest rate data.
Use the nominal rates of interest supplied by your lender when using Universal/monthly or US interest settings in all input boxes requiring interest rate data.
In Canadian mode the software automatically set the mortgage calculation programs in CheckMy Mortgage to use semi-annualized compounding annual interest rates. In CheckMy Mortgage these are referred to as "Canadian Mortgage interest rates".
Canadian banks and mortgage lenders operate semi-annual mortgage rules.
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Canadian banks and mortgage lenders provide semi-annual repayment mortgages rather than the monthly reducing balance methods used in the United States and Great Britain.
Mortgage interest rates are therefor quoted as "Canadian annual interest rates", rather then the nominal interest rates which apply to US mortgages.
When using CheckMy Mortgage in Canadian and/or semi-annual settings, enter the Canadian interest rate quoted by your lender when inputting interest rate data into CheckMy Mortgage 2000/Canadian settings. The software recognizes that you are using Canadian or semi annual repayment rules and applies mortgage calculations using effective rates of interest.
CheckMy Mortgage 2000 calculates the conversion of Canadian annual interest rates to nominal interest rate values "behind the scenes" to apply to six monthly semi annual declining loan balances.
For detailed explanation how Canadian semi annual mortgages are calculated and the relationship between effective interest rates governing semi-annualized basis of mortgage calculations and nominal rates of interest, read Interest rates, variants and all that stuff.
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Lenders can sometimes miscalculate mortgage repayment amounts. In the course of our cross checking CheckMy Mortgage data with other sources during our beta testing program we discovered that commonly applied Canadian mortgage repayments tables published by reputable sources miscalculate (underpay) monthly repayment amounts, because of faulty arithmetic.
Our calculation data within CheckMy Mortgage however cross-checked with mortgage repayment calculations obtained from the Canadian version of Quicken®.
We have discovered why the Canadian mortgage calculations are wrongly calculated. In the United Kingdom as well, press investigations have also uncovered thousands of borrowers paying inaccurate payments due to underpayment of regular repayments.
The arithmetic of mortgage repayments is such that if a lender instructs a borrower to underpay their regular mortgage repayments then the borrower is underpaying loan repayments and then the lender gains higher interest charges.
In the Canadian mortgage errors reported above the repayment errors cause thousands of dollars of extra interest to be incurred over the loan period.
Further advise about this subject plus guidance how to use CheckMy Mortgage 2000 to calculate your overpayment of interest if this is occurring, is contained in Checking Loans and Mortgages with CheckMy 2000 software.
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Question/Problem
How do I start using CheckMy Mortgage 2000? Install the software Quick Start message
I have entered my mortgage data into the Schedules screen, now what do I do now? Click the Enter button located at the bottom of the screen. This starts the calculations. How do I save this data? Click the Save button on the toolbar. I have entered my mortgage data into Schedules but cannot get the Annualcalc on the toolbar to do anything? You have to click Enter in the Schedules screen to calculate the full amortization schedule first of all. How can I see a full screen of repayment Schedules rather than the partial screen?
.Click the Move> button at bottom right of the screen. I am trying to calculate a mortgage over 60 years in length but the software will not accept the loan term period. CheckMy Mortgage limits the loan term to 50 years. What is the difference between Loan term and Mortgage term? Loan Term is the period over which the loan is fully repaid. The Mortgage Term is the period at which you have to repay the loan balance. Give me an example If your lender provides a loan that would be fully repaid after 25 years at the given rate of repayment, but they require the outstanding balance to be repaid at the end of 7 years then the Loan Term is 25 years and the Mortgage Term is 7 years. Can I calculate my loan balance at the end of my mortgage term? Yes, the Repayment balance value on the right hand side of the screen is the repayment balance. My mortgage interest rate is going to vary over the period of my mortgage. How can I work out my loan balance with changing interest rates? Keep track of your mortgage repayments and changing interest rates in the MyMortgage section of CheckMy Mortgage. This calculates your mortgage loan balance each repayment period. I have a Canadian mortgage I repay monthly but CheckMy Mortgage applies repayments every six months. Why is that?
Canadian mortgages are based on Semi Annual repayment calculation basis. Your lender receives monthly payments but only recalculates outstanding loan balances every six months. We follow the standard calculation rules for semi annual mortgage repayments.
What does "Loan Potential" mean in the Equity and Loan Potential screen that follows the MyMortgage mortgage maintenance schedule? Provide me with an example. As your property loan is repaid your debt decreases. In normal economic circumstances the value of your property increases in value over the same period. Loan Potential part of CheckMy Mortgage applies your inflation index to the value of your property each year, computes a new value and then deducts this from the declining loan balance. You decide how much of this equity you may wish to borrow against and enter this as the Loan Potential percent amount. If you want to borrow 50% of your future equity enter 50.00 as the Loan Potential figure. The software then calculates your loan potential over future years and can recalculate the data with differing property inflation assumptions. How is this different from the Analysis I can use in Compare Mortgages? Real Estate analysis forecasts your future net equity year by year on the same basis as the Loan Potential. The analysis goes further by inflating your annual costs and expenses at a cost index rate you provide, computing future investment returns on the starting deposit amount. Different mortgage terms will have different long term effects on your equity and investment returns on the initial deposit amount. What are "points" that I can see in the Refinance part of CheckMy Mortgag Points are in common use in the United States as a negotiated up front payment for a reduced interest rate. In countries where this practice is not used simply enter zero in the box What is the difference between "Expenses" And "Costs" in Refinance? Expenses incurred in renegotiating a mortgage which are added to the Loan Balance and amortized over the loan period are categorized as "Expenses" in CheckMy Mortgage. Costs incurred in renegotiating a mortgage which are not added to the Loan Balance are categorized in CheckMy Mortgage as "Costs". How do I set CheckMy Mortgage to my Country mortgage calculations? Go the front menu and click Country settings. Select the country and currency of your choice. Why don't the amortization calculations produce a zero balance in the final payment period? Because borrowers repay their loans in pennies, whereas the true payment amount to yield a zero balance requires repayment to 5 or 6 places of decimals which is impossible. Therefor a small balance may rise in the very last period due to this decimal rounding. How do I know the calculations are correct? The calculated repayment values in CheckMy Mortgage have been cross checked with Barrons' Mortgage calculation tables for interest rates between 3% and 20% p.a., over 2-30 years, with Quicken® loan repayment calculations. These all crosscheck (are identical) with figures provided by CheckMy Mortgage 2000. My mortgage repayments don't agree with those in CheckMy Mortgage, why is that? Since our calculations cross check with all the sources above and with those provided at the start of this User Guide, the conclusion may be that your lender has incorrectly calculated your repayments. Refer to the Checking loans and mortgages guide. If I am underpaying my mortgage, my lender is receiving more interest each year than they should. What do I do about that? You can use CheckMy Mortgage to calculate the extra interest you might have paid. Refer to the Checking loans and mortgages guide.
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CheckMy 2000 software is fully Y2K compliant. Years can be used in full four-digit mode throughout all CheckMy 2000 products.
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Installshield is a registered trademark of Installshield Software Corporation.This User Guide is the property of Abacus Systems Ltd., 44 Church Street, Hamilton, Bermuda. It is copyright protected. It is provided freely on the Internet to assist with the use and application of CheckMy 2000 software. Any unauthorized reproduction or copying is prohibited.
© 2000. Abacus Systems Ltd. All rights reserved. ______________________________________________________________________________________
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