software

Hello and thank you in advance for your guidance... creating a spread
sheet for mortgage calculations and have first and second mtgs to
calculate. I seem not to be able to 'formulate' the following type for
second mortgages: % of sales price (from another cell) * rate/term =
PMT any one can assist on this? Using Excel 2002.quot; wrote:
gt; creating a spread sheet for mortgage calculations and have
gt; first and second mtgs to calculate.

I confess that I do not fully understand your terminology, and
I would very much like to learn. Can you explain your situation
a little more, especially what you mean by quot;first and second
mtgsquot; -- mortgages?

gt; I seem not to be able to 'formulate' the following type for
gt; second mortgages: % of sales price (from another cell) *
gt; rate/term = PMT

Well, taking what you stated literally, the PMT would be:

=A1*B1*C1/D1

where A1 is the sales price, B1 is the percentage, C1 is the
rate per payment period, and D1 is the number of payments
(term).

If you have the annual nominal rate in C1, then replace quot;C1quot;
above with quot;C1/D1quot;. And if have the term in years in D1,
then replace all instances of quot;D1quot; with quot;D1/12quot; if you want
monthly payments.

But why would the payment for a second mortgage be
determined differently from a first mortgage. PMT for a first
mortgage is usually:

=PMT(C1, D1, -A1*B1)

Caveat: Since I do not fully understand your terminology, my
answer is not dispositive. Take it with a grain of salt.