Loan Pool Named Formulas, Without An Amortization Schedule

In a recent post I showed math formulas for a pool of mortgages that could calculate any amount, for any month, without an amortization schedule. This post and spreadsheet takes these formulas one step further and creates names for the formulas. After entering a description of the loan pool: Enter the month, in the future, that […]

Market Value Functions for Servicing (MSR), Interest (IO), & Principal (PO)

Last year I posted an Excel workbook with a user defined function that calculated the market value of Mortgage Servicing Rights (MSR). I have taken the same workbook and added two more functions. These two functions are the market values of interest only (IO) and principal only (PO) on a mortgage loan. I am including the function […]

When Cash Flows Don’t Match Compounding Periods

In a previous post Simple Formula for Converting Compound Interest Rates and spreadsheet, I showed a conversion formula that allowed the user to convert an interest rate from one compounding period to another equivalent compounding period. For example, you could calculate the annual equivalent for a monthly compound rate, or the semiannual equivalent rate of a quarterly compound rate, […]