FAMILY LOAN AMORTIZATION

FAMILY LOAN AMORTIZATION (FLA) by FAMware, Computer Software for the Family. You provide the loan amount, interest rate, months to repay, and FLA calculates the monthly payment. Produces a schedule showing the disposition of each payment, to principal and to interest, and the remaining balance throughout the life of the loan. Several variations and options regarding making extra payments along the way. Great for "what-if" analysis. Easy to learn and use. Inexpensive. For Windows 95,98,NT,00,ME.


FAMILY LOAN AMORTIZATION (FLA) Main Features:

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Repaying A Single Sum
Suppose you borrow 1000 dollars at 9 percent interest and you must repay it at the end of three years in one lump sum (i.e., no monthly payments during the three years). The loan is set up so that you are charged interest against the outstanding balance quarterly. How much will you need to pay off the loan at the end of the three years?

Repaying An Amount Each Month

• Simple Monthly Repayment Scenario
  Suppose you purchase a dirt bike that costs $2400. You don't have the money so you "finance it" at 8% interest per annum. Based on your job, and expenses, you think you can pay about $140 a month for the bike. The bike finance company agrees and structures the note to accommodate your repayment plan. However, to make sure they get their money, they want you to set up an automatic monthly deduction from your pay check that goes to the bike finance company. How long will it take you to pay off the $2400 loan?



• Using A Calculated Monthly Payment
  Suppose you must send your daughter on a trip to Europe that costs $4000. You don't have the money saved so you ask to borrow it from a friend. The friend usually earns 13% on investments and is willing to make the loan if you will pay back the $4000 plus 13% interest. The friend wants you to make an equal payment each month such that the entire loan is paid back in 9 months. How much will you need to pay each month to pay back $4000 at 13% by the end of the 9 months?

More Advanced Features
Suppose you wish to take out a mortgage for $150,000 to purchase a house. You have 20 years until retirement so you want the mortgage term to be for 20 years. The current going mortgage interest rate is 9.75%. Let's suppose that right now you can afford a monthly payment of $1500 a month from your salary but the mortgage company, at 9.75% for 20 years, only requires that you to pay $1422.78 per month.